In addition to new home sales dropping in February, the National Association of Realtors reported that existing home sales fell in February 2010 to a seasonally adjusted annual rate of 5.02 million units, down 0.6% from the 5.05 million units that were sold in January 2010. Despite this drop in sales volume, sales in February were nevertheless up 7% from the 4.69 million units sold in February 2009.
While the snow, sleet and ice are major reasons to blame for keeping potential home buyers indoors, the lack of any soon expiring homebuyer tax credit did not produce the surge in home sales that was seen in the fall and is expected before the April 30 deadline, as homebuyers take advantage of low current mortgage rates to purchase or refinance.
Existing Home Sales Fell in February thanks to snowy conditions and an extended homebuyer tax credit
The national median existing home price was $165,100 in February 2010, down 1.8% from the February 2009 price as a result of distressed homes accounting for 35% of last month’s total sales. The Federal Housing Finance Agency (FHFA) index, which tracks the prices of houses that are sold or guaranteed by Fannie Mae, Freddie Mac or the Federal Home Loan Banks over time, is 13.2% below its April 2007 peak, indicating that low current mortgage rates and depressed home prices make it a strong buyer’s market.
Despite total home sales dropping for the month, existing home sales in the Northeast were up 2.4% and 2.8% in the Midwest, as buyers took advantage of current mortgage rates in states such as Connecticut and Illinois. Despite low mortgage rates in Georgia and Virginia, however, home sales in the South fell 1.1% and 4.7% in the West in February 2010.
The housing recovery is still fragile at the moment, however, now is a great time to capitalize on near record low mortgage rates before they start to rise later in the year. Total Mortgage Services offers some of the best current mortgage rates in the Country. Whether you are looking to refinance your home with a Jumbo loan in New York state or require an FHA loan to purchase your new home in Pennsylvania, call 877-868-2503 today to speak with one of our mortgage professionals.
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The Meck Deck
March 24, 2010 @ 12:15 pm
Home sales were off the other day too, with the national median price down too.