Mortgage applications have increased for the third consecutive week signaling a possible higher number of sales to come soon!
Chicago, IL (PRWEB) October 25, 2014
Lenders like Peoples Home Equity were pleased to see September new home sales reach a new annual pace high. This high pace shows that existing home owners are switching up for new homes which are positive for first-time home buyers.
According to the latest U.S. Census Bureau monthly residential report, released on Friday, October 25th, September new home sales increased to an adjusted annual rate of 467,000 up just 0.2% from 466,000 in August. September marks the 3rd consecutive rise in new home sales since June. In June, sales were at just 419,000, then sales increased to 427,000 in July, then 466,000 in August, and now 467,000 in September. The trend is up, meanwhile mortgage applications have recently surged 11.5% for the week ending on October 17th. Mortgage applications have increased for the third consecutive week signaling a possible higher number of sales to come soon!
Peoples Home Equity considers the market very healthy at this level of new home sales. One must remember while new home sales represent approximately 10% total sales, they are an important element of the market. Typically, existing home owners list their relatively less expensive homes for new homes. This increases housing inventory available to first-time home buyers. Lender and agents both know that housing inventories have been low for a few years. One of the best things that can happen to increase transaction activity is to get more homes listed onto the market. New homes sales, as well as new housing starts, and building permits, highlight the interest of Americans in moving into a newer home.
Peoples Home Equity expects the winter and fall months to show seasonal strength this year regarding sales and home prices. Sure sales and prices may decline with the season, but Peoples Home Equity does not expect the fall to be as deep as 2013. If interested in purchasing a home this winter, consider contacting a Peoples Home Equity loan officer at: 262-563-4026. If unsure whether a mortgage is the correct thing to do, remember that home loan payments are typically less expensive than rent, even after considering taxes and HOA fees. One can easily estimate how much a home loan would be using Peoples Home Equity's "Monthly Payment Calculator" tool.