Chicago, IL (PRWEB) November 20, 2013
Existing home sales declined -3.2% today on a month over month basis. However, Peoples Home Equity sees the market stabilizing to a more sustainable level.
October existing home sales reported today declined lowest level since June. With a reading of 5120k for October vs September at 5290, the decline was the largest seen since June 2012 which was -3.92% from May 2012. Unfortunately, mortgage rates did decline in the sales drop as would be expected. Mortgage rates were far too busy listening to the FOMC minutes and dealing with the reality that a Fed seems more inevitable by the day. For readers anxious about rates moving even higher, Peoples Home Equity analyzed 43 years of rate fluctuations and found that November shows a bias regarding higher rates, with many years showing the lowest rates in December, January, and February. Thus, the best time to obtain a mortgage is perhaps yet to come!
With property values climbing over 10% this year and no increase seen in household incomes, it’s no surprise to see the fall in existing home sales this month. Peoples Home Equity believes see the month-over-month decline in existing home sales as a healthy correction and a sign that the real estate market will a slower but more steady climb over the long run.
First-time home buyers are going to play a larger role in the future rather than investors. As discussed in a November 9th news release by Peoples Home Equity, 88% of metropolitan markets are rising throughout the USA. First-time home buyers want a piece of the price action. The lender encourages prospective first-time home buyers to at least get approved for a mortgage before shopping for a home. Many Peoples Home Equity loan officers find it nearly useless go through the home buying process any other way. Once approved for a mortgage, a first-time home buyer can shop with the confidence know how much he or she can spend on a monthly payment. This knowledge of credit line filters the home buyers search precisely based on their finances. Sellers will also seriously consider a bid from some who is already pre-approved because they know by accepting the offer the house will be sold.
Contact a Phoenix Peoples Home Equity loan representative today at: (480)-759-1500.