With favorable market conditions for buyers, more Americans are moving quickly to purchase property. The number of pending sales of existing homes reached a four-year high in May, according to the National Association of Realtors (NAR). The pending sales index rose more than 6 percent nationally, exceeding many economists' expectations.
As the job market continues to improve, many potential home buyers are moving to close deals before interest rates go up.
"It looks like May was a good month for home sales," J.P. Morgan Chase economist Daniel Silver said in a note to clients, as reported by The Wall Street Journal. "Many of the housing indicators we track have pointed to a pickup in the housing market over the past few months following its recent earlier slump."
Mortgage rates fell further in the final week of June. Mortgage giant Freddie Mac says the average 30-year fixed mortgage rate dropped to 4.14 percent, and the average 15-year mortgage plummeted to 3.22 percent.
While Federal Reserve Chair Janet Yellen has said interest rates should stay low to encourage consumer spending, other officials are pushing for an increase in the near future. Those who are thinking about buying a home should consider acting sooner rather than later if they want to take advantage of the low rates.
If you are interested in exploring Sacramento, El Dorado or Placer County real estate, call me, top agent Jon Hesse! Whether you are shopping for your first home or an additional vacation property, I can help you find the one that is right for you. With more than $100 million in completed real estate transactions, I have the experience necessary to guide you through the home-buying process.