Spurred on by the expiring first-time home buyer tax credit, pending home sales jumped 5.3 percent in March, beating economists’ median expectations. This follows an 8.2 percent increase in February. Over the past year the index is up 8.8 percent.
While it is difficult to separate the impact of government tax credits from organic demand for homes, there is a burgeoning feeling among consumers that the worst of the recession is behind us and the economy is improving again.
Pending home sales increased in three out of the four regions surveyed by the index. The South gained 13 percent, while the Midwest gained 1.2 percent, and the West increased 1.9 percent. The Northeast was the only region that posted a loss, falling 3.3 percent.
Borrowers benefited from improved mortgage rates last week, as the average 30-year fixed rate mortgage rate was 5.11 percent at the end of last week. Much of the improvement in rates can be attributed to risk-averse investors fleeing to the safety of Treasuries after the Goldman Sachs scandal and the Greek Debt Crisis rocked the stock market. Most analysts expect mortgage rates to end the year higher, but short-term volatility will offer good buying opportunities for those with good timing.
Low mortgage rates and low property values make right now an excellent buying opportunity for those looking to make a long-term investment in a home, but these favorable conditions will not last forever. Call one of Total Mortgage’s mortgage experts at 877-868-2503 today to see what we can do for you.
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