On Falling Mortgage Rates, Sales of Previously Owned Homes Rose in May

Wall Street Journal writer Laura Kusisto reported today that, “Sales of previously owned homes rose in May, a sign that falling mortgage rates could be nudging the housing market toward a modest spring performance after a sluggish start to this prime selling season.

Sales rose 2.5% in May from the prior month to a seasonally adjusted annual rate of 5.34 million, the National Association of Realtors said Friday.

The spring is crucial to the housing market because roughly 40% of the year’s sales take place in March through June. May was the first month this spring when sales rose from the prior month, but compared with a year earlier sales in May still declined 1.1%.”

The Journal article stated that, “The housing market struggled late last year even as the rest of the economy boomed, in part because higher mortgage rates priced some buyers out of the market.”

“Mortgage rates are now below 4% for the first time since January of last year, according to Freddie Mac. That is down from nearly 5% in the fall, a saving of roughly $200 a month for the typical home buyer,” today’s article said.

This entry was posted in Real Estate Law. Bookmark the permalink. Both comments and trackbacks are currently closed.