Monday, October 27, 2014

Why Housing Is Coming Back

Home sales in September reached a new high-water mark for 2014, reaching an annual rate of 5.17 million homes sold, according to figures released last week by the National Association of Realtors. Median home prices are also up to $209,700, an increase of 5.6 percent from a year earlier.

Sales of previously existing homes were up 2.4 percent in September. Home sales actually peaked in the middle of 2013, at an annual rate of 5.38 million. While they haven't returned to that level, both figures are well above the recession-fueled low of 3.45 million in 2010.

One of the reasons for this year's resurgence has been the drop in mortgage rates. Last week, 30-year mortgage rates fell to 4.03 percent, down from 4.29 percent in September, and 4.63 percent at the beginning of the year. Thirty-year fixed rates are now at their lowest level since June 2013.


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