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Home Sales up over 20% in June

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Mortgage and Lending with The Federal Savings Bank/Lending in 50 states NMLS # 109616

The National Association ofREALTORS® reports that Existing Home Sales soared by 20.7% in June from May to an annual rate of 4,720,000 as the sector continues to shine post-pandemic shutdown. The monthly gain was the largest on record. However, sales are down 11.3% year-over-year due in part to the declines seen in late March, April and May. Gains were seen across all four major regions of the country.“The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eying during the shutdown,” said Lawrence Yun, NAR’s chief economist. “This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue.”

Home borrowing costs continue to run at record lows which spurred on mortgage application activity in the latest week. The Mortgage Bankers Association (MBA) reports that the 30-year fixed-rate mortgage held at 3.20% with 0.35 in points for the week ending July 17, 2020. The MBA reports that the Market Composite Index, a measure of total home loan application volume, rose 4.1%, the Purchase Index increased 2% while the Refinance Index was up 5%. Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting said, "There continues to be strong homebuyer demand this summer, as home shoppers have returned to the market in many states."

 

Sales of existing homes soar in June. Existing Home Sales rose in the four major U.S. regions. Home borrowing costs remain low.