What is interesting about the monthly increase in new home sales is that it has occurred even while weekly mortgage applications declined throughout the month of May.
Chicago, IL (PRWEB) June 24, 2015
Lenders like The Federal Savings Bank were very pleased to see the new home sales report for May which was released today, June 23rd.
As reported by the U.S. Census Bureau, the number of new home sales in May reached an annual pace of 546,000, which is the highest pace not only of 2015 but for the past 7 years! New home sales have now risen for 3 consecutive months from an annual pace of 494,000 in March to 534,000 in April, to now 546,000 in May. Regionally, new home sales increased a whopping 87.5% in the northeast which is the largest increase since July 2012. The west experienced “just” a 13.1% rise, sale actually fell in the south by 4.3%, and sales also declined 5.7% in the Midwest.
To offer some perspective TradingEconomics.com states that “New Home Sales in the United States averaged 655.06 Thousand from 1963 until 2015, reaching an all time high of 1389 Thousand in July of 2005 and a record low of 270 Thousand in February of 2011.” The Federal Savings Bank knows there is still plenty of room for improvement and expects the annual pace of sales to continue rising. Older existing homeowners have been eager for the value of their home to increase so they can sell and purchase a new home. This is creates the opportunity for younger first time home buyers to purchase an existing home which positively effects existing home sales.
What is interesting about the monthly increase in new home sales is that it has occurred even while weekly mortgage applications declined throughout the month of May. One can only imagine how strong new home sales might be if weekly home loan applications began increasing consecutively.
Of course the real reason why new home sales are rising is historically low mortgage rates and a strengthening jobs market.
For information about getting a low cost mortgage to finance your short sale purchase, contact the Federal Savings Bank, a veteran owned bank.