Home sales Surge in March-April

The spring selling season gets off to a sunny start in March with the sale pace reaching an 18-month high. Also, NAR President Chris Polychron urges the Senate Banking Committee to take action on overly tight mortgage credit. Other stories: Hard-hit buyers are returning to the market seven years after the downturn and the Rural Housing Service joins NAR to talk about the advantages of Sec. 502 direct loans for households that otherwise wouldn’t be able to get mortgage financing.

Home sales slip slightly in June, 2014

Pending Sales Post Solid Gain in May 2014

The Pending Home Sales Index,* a forward-looking indicator based on contract signings, increased 6.1 percent to 103.9 in May from 97.9 in April, but still remains 5.2 percent below May 2013 (109.6). May’s 6.1 percent increase was the largest month-over-month gain since April 2010 (9.6 percent), when first-time home buyers rushed to sign purchase contracts before a popular tax credit program ended.

Lawrence Yun, NAR chief economist, expects improving home sales in the second half of the year. “Sales should exceed an annual pace of five million homes in some of the upcoming months behind favorable mortgage rates, more inventory and improved job creation,” he said. “However, second-half sales growth won’t be enough to compensate for the sluggish first quarter and will likely fall below last year’s total.”

Realty Times – Five Great Things about Homeownership

25516 Crestfield Dr, Castro Valley, CA | Powered by Postlets

25516 Crestfield Dr, Castro Valley, CA | Powered by Postlets.

 

Open House in Five Canyons, Castro Valley.

Open Saturday and Sunday August 13th and 14th from 1-4 PM.

The Price/Rate Trade-Off

• Which is better? A lower price or a higher rate?
If home prices decline by 3 percent, the monthly PITI payment of a median-priced home in California in May, would decline to $1,492 from $1,538, a savings of $46. However, if mortgages rise by 0.5 percent to 5.14 percent (the average rate for a 30-year fixed mortgage in May), the monthly payment would increase to $1,560, $68 more than the PITI for the lower-priced home.
• In the long-run, current mortgage rates can save you money
The bottom line is that minor price fluctuations have only a minor impact on the monthly payment, while even small changes in mortgage rates can make a big difference when calculating the monthly payment.