This increase is still 5.2 percent below the 109.6 value of May 2013 but is the biggest over-month increase since April 2010`s increase of 9.6 percent.
Chicago, IL (PRWEB) June 30, 2014
Lenders such as Peoples Home Equity were glad to see the pending home sales results announced by the National Association of Realtors (NAR) on Monday morning, June 30th.. Pending home sales increased by 6.11% from April to May, this was hardly a surprise for Peoples Home Equity is it mentioned on Sunday, June 29th that it expected sales to outperform the forecast 1.2% rise. The Pending Home Sales Index, which is based in home purchase contracts, moved up from 97.9 in April to 103.9 in May. This increase is still 5.2 percent below the 109.6 value of May 2013 but is the biggest over-month increase since April 2010`s increase of 9.6 percent.
Lawrence Yun, NAR chief economist said that "Sales should exceed an annual pace of five million homes in some of the upcoming months behind favorable mortgage rates, more inventory and improved job creation." These words were encouraging to hear and were supportive of expecting GDP growth for the 2nd quarter of 2014.
Unfortunately, first-home buyers are still limited on accessing credit due to existing debt burdens such as student loans. Yun expects home sales to be down for 2.8 percent this year, reaching 4.95 million in comparison with the 2013 sales of 5.1 million. Peoples Home Equity is more hopefully, especially given that weekly home sales are already within 2.5% of 2013’s numbers.
Peoples Home Equity reminds prospective home buyers that purchasing a property is becoming more attractive due to a number of factors. Mortgage rates have recently declined and the expectation of volatility to return the market is building. If home price fall in the near term a a tremendous buying opportunity would open itself to home buyers. Buyers are also anxious to purchase a piece of real estate as rent price are rising and expected to increase by 8% annually over the next few years. Lastly, but not least, incomes are also expected to rise, especially since the Federal government is taking measure to raise the minimum wage. If curious whether you can afford a mortgage right now, please visit PeoplesHomeEquity.com and click “How Much Can I Borrow” under their Calculator tab. Or, contact a Peoples Home Equity loan officer today at: 262-563-4026