Existing Home Sales Decline While New Home Sales Climb
Chicago, IL (PRWEB) July 25, 2013 -- The Federal Savings Bank has been informing its perspective mortgage applicants that while existing home sales declined by a margin in June, new homes sales actually rose 8.3%.
Sales of new homes rose to an adjusted annual rate of 497,000 which according to USA Today, is the best pace since May 2008. "We are telling perspective clients, that while mortgages rates have climbed, so have property values" says Nick, a banker at The Federal Savings Bank (TFSB).
Indeed rates of climbed scaring some applicants who search to buy a home on the monthly payment. However, other buyers are still eager to buy a home while the Case Shiller National Home Price Index remains more that 25% below its all time high in March 2006.
While it may be too early to state the effect of rising mortgage rates, the new home sales data certainly confirms that the housing recovery remains intact. "We are seeing some applicants turn away from a mortgage and continue to rent in hopes of a better rate later, however we encourage all perspective lien holders to lock in their rate now if their finances are in order" says Nick at TFSB.
In December 2012, the Federal Reserve implied that rate hikes were planned once unemployment decline to a reasonable 6.5%. While Fed Chairman Ben Bernanke has been concerned with the recent rise in rates, it seems unlikely that his concerns would endure after another percentage drop in unemployment.
The Federal Savings Bank encourages all perspective buyers to at least apply for a mortgage to see how much credit one is approved for. Once approved the potential lien holder may filter his or her search for a new or existing home. With new home inventories remaining tight, the bank does not expect any large decline in demand for housing. If interested taking advantage of the current housing recovery with a low rate mortgage please contact a loan officer at The Federal Savings Bank: 855-686-3883
The Perfect Mortgage Experience, The Federal Savings Bank, https://www.thefederalsavingsbank.com, 855-686-3883, [email protected]
Share this article