The National Association of Realtors reported good news for home sales this fall. According to their data, home sales were 4.4% higher annually. This stems from the boost in newly built home sales, lower 30-year fixed rates and an overall increase annually in pending home sales.
Across the country for-sale inventory has fallen but the demand has increased. October 2019, showed a major spike in sales of newly built homes compared to those reported in October 2018. Builders across the United States are focusing more on construction of more affordable homes.
Lower rates throughout this year has definitely pushed an increase in demand for new construction. The average 30-year fixed mortgage rates reached almost a full percentage point lower this October than it was a year ago. Reports are showing an increase in mortgage applications and this will continue as the lower interest rate holds.
All the regions reported an annually higher percentage in pending home sales. The Northeast reported a 3% higher increase, the Midwest was 1.8% higher, the South reported a 5.1% increase from this time last year and the West was a 7.5% increase.
“There is no shortage of buyers seeking homes,” said Lawrence Yun, chief economist at the NAR.
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