The home industry is seeing growth, according to the latest numbers that have been released. Despite a brief increase in mortgage rates and rate fluctuations, sales for new home sales hit a five-year high during the month of June.
Selling at annual rate of 497,000 units in June, sales were up 8.3 percent from the previous month of May, which had been revised downward. June sales were past the 483,000 mark, which was the expectation set by the surveyed economists.
This was the highest number of new home sales reported since May 2008, when totals were at 504,000. Sales were 38 percent higher this year than for the same time period last year.
Only the day before this report was released the National Association of Realtors reported a decrease in existing home sales for the month of June. Some experts believing lagging existing home sales could have been the result of the increase in mortgage rates.
Early in July, the 30-year fixed rate mortgage rose to 4.51 percent, which was the highest rate in almost two years. Home building’s pace slowed last month with the rate fluctuations.
During the past year, the housing market has begun to rebound with mortgage rates at historic lows and a decrease in the number of foreclosures. Earlier this year, home sales, prices and construction saw major improvement.
However, a steady climb in rates during the last 10 weeks have increased the cost of home buying and affected the number of sales. Despite the increases in rates, the rates have remained historically low, experts point out.
Mortgage Rates for Thursday
Mortgage rates have risen slightly. With an increase of .08 percent, the best execution rate for a 30-year fixed mortgage fell at 4.49 percent with a 15-year fixed rate mortgage increasing .05 percent to set at 3.67 percent. The FHA 30-year rate remains stable at 4.25 percent.
A Jumbo 30-year note saw a .07 percent increase to settle at 4.57 percent while a 5/1 ARM raised .04 percent to land at 3.25 percent. Actual rates vary from lender to lender. Analysts also point out that the fluctuating rates have led to great variations in fees and closing costs, so those must be considered before choosing a lender as well.
Although there have been rate fluctuations, now remains the time to buy or refinance, according to experts. Rates are still low and can save home buyers and homeowners a significant amount of money.
Disclaimer: The rates quoted above are basically the average advertised by a particular lending company. No guarantee of taken from the lender’ aspect whether the borrower will qualify for the mortgage rates mentioned in the article. The lenders dole out interest depending upon various facets, some of which may be unique to the borrower. This website does not engage in the sale or promotion of financial products and makes no claims as to the accuracy of the quotation of interest rates.