NATIONAL Housing Market Update: Existing Home Sales Rise More Than Expected
Sales of previously owned U.S. homes rose more than expected in March, suggesting the housing market's downward trend may be close to hitting a bottom.
The National Association of Realtors said sales rose 3.7 percent month over month to an annual rate of 5.10 million units after an upwardly revised 4.92 million unit pace in February.
Economists polled by Reuters had expected sales to rise 2.5 percent to a 5.0 million-unit pace from the previously reported 4.88 million unit rate. Sales have now risen in six of the past eight months.
The median home price fell 5.9 percent in March from a year earlier to $159,600 which shows that the spike in demand for homes is mostly driven by the lower end of the price spectrum as new home buyers are finally entering the market.
What Happened to Rates Last Week:
Mortgage backed securities (MBS) gained +16 basis points week over week. But the real story is the activity during last week. As MBS lost -25 basis points from Monday's highs to Thursday's close (market was closed on Friday). This caused 30 year fixed mortgage rates to increase throughout the week as traders were unwilling to purchase MBS at the 100 day moving average. MBS also reacted to the stronger than expected Building Starts, Building Permits, Existing Home Sales, and the Leading Indicators.
Wondering how much of a mortgage you might qualify for today? Give Hal a call to find out!
Harold (Hal)
Senior Loan Officer
Office: 800-333-3004 x 3441
Cell: 703-507-1572
hjohnson@embracehomeloans.com
10306 Eaton Place
Fairfax, VA 22030
www.embracehomeloans.com
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