Sales of existing homes rose 10 percent between August and September, a Realtors group says.
The National Association of Realtors reported October 25 that previously lived-in houses sold at an annualized pace of 4.53 million in September. August, by contrast, saw a sales rate of 4.12 million homes.
Two factors are militating in favor of stronger home sales, NAR chief economist Lawrence Yun said. The first is low mortgage rates - according to the Mortgage Bankers Association, an industry group, 30-year home loans carry an average rate of 4.34 percent, while 15-year mortgage rates stand at 3.74 percent. Also lending support to the housing market is high affordability: Prices are, on average, 2.4 percent lower than they were a year ago.
And, NAR president Vicki Cox Golder said, "home prices are running about 22 percent less than five years ago."
Partly explaining the rise in affordability is the relative weakness in home buying activity. September's existing home-sales rate was 19.1 percent below its year-ago level - and demand for homes has proven weak since the homebuyer tax credit expired in April.
To learn more about the housing market, read up with Kiplinger's articles and resources.
