Existing-home sales increased in August, even with ongoing tight lending policies. Monthly gains were seen in all regions. Total Existing Home Sales, which are completed transactions that include single family, townhomes, condominiums and co-ops, rose 7.7 percent to a seasonally adjusted annual rate of 5.03 million in August from an upwardly revised 4.67 million in July, and are 18.6 percent higher than the 4.24 million unit level in August 2010.
Investors accounted for 22 percent of purchase activity in August, up from 18 percent in July and 21 percent in August 2010. First-time buyers purchased 32 percent of homes in August, unchanged from July, they were 31 percent in August 2010.
All cash sales accounted for 29 percent of transactions in August, unchanged from July; they were 28 percent in August 2010; investors account for the bulk of cash purchases.
Total housing inventory at the end of August fell 3.0 percent to the 3.58 milllion existing homes available for sale, which represents an 8.5 month supply at the current sales price, down from a 9.5 month supply in July.
What happened to Rates Last Week?
Mortgage backed securities MBS gained 178 basis points last week which helped to move mortgage rates much lower from last Friday to the prior Friday. Mortgage rates moved lower in response to the FED's announcement that they would move from purchasing shorter term Treasuries to buying longer term Treasuries. They also announced that they would purchase more mortgage backed securities with the principal that they are receiving on their current mortgage backed security holdings. The best interest reates were on Thursday afternoon. On Friday mortgage rates started to climb back up from their lows.
What this means to you?
This is the perfect time to buy Real Estate! For more information contact DEBnAIR at RE/MAX Sedona your Real Estate Professionals.
DEBnAIR RE/MAX Sedona
928.301.1947 or 928.301.2568 toll free at 800.282.4166 info@debnairrealestate.com