PENDING HOME SALES INDEX HITS 9-YEAR HIGH
Homes are going under contract at the fastest pace since 2006 as low mortgage rates, loosening loan guidelines, and eager sellers combine to shape the hottest housing market of the decade.
30-year mortgage rates have held beneath 4 percent since last November and buyer purchasing power is up 10% as compared to the start of last year.
Because of low mortgage rates, if you could afford a $300,000 home one year ago, you can afford a $330,000 home today.
Meanwhile, with U.S. rents rising, first-time buyers now account for thirty percent of today’s buyers; and 46% of homes sold within 30 days in April. Existing Home Sales and New Home Sales volume are besting multi-year highs and homebuilders project strong sales to close out the year.
It’s a seller’s market and buyers are snapping up homes. More here.