The spring housing market continues to experience strong growth. The most recent new home sales report from the Mortgage Bankers Association shows an increase of 17 percent over last month. With the shortage of existing homes for sale, buyers are turning to new construction. Another recent report revealed a sudden uptick in mortgage applications last week that also confirmed the housing market’s firm footing. The Builder Application index reached its highest level. Over the last three years, new home buying activity was strongest during March and April, which indicates that the upward trend in sales should continue.
The strength of the job market and the overall economy are giving buyers the confidence to take advantage of the near record-low interest rates. With the Federal Reserve expected to raise interest rates in the near future, the window for low mortgage rates may be ending. Now is a great opportunity whether you want to sell or buy a home in the near term. Low inventories mean that sellers are able to receive their asking price or more. The current low interest rates make homes more affordable for buyers. Government loans with smaller down payments are also readily available. This favorable combination of stabilizing prices, low rates and deals on mortgage insurance may change in the future.
If you are interested in selling or buying a home, contact a professional real estate agent. An experienced agent can guide you through the process and help you take full advantage of today’s ideal market conditions.
