Existing Homes Sales Continue to Rise

Existing-home sales rose again in August and reached their highest levels in six and a half years, according to a recent report by the National Association of REALTORS (NAR). Existing-home sales, which include recently purchased single family, townhomes, condominiums, and co-ops rose 1.7 percent and are currently on pace to reach 5.48 million units for the year, up 13.2 percent over levels set just last year.





NAR chief economist Lawrence Yun questions whether the market will level off. "Rising mortgage interest rates pushed more buyers to close deals, but monthly sales are likely to be uneven in the months ahead from several market frictions," he said. "Tight inventory is limiting choices in many areas, higher mortgage interest rates mean affordability isn’t as favorable as it was, and restrictive mortgage lending standards are keeping some otherwise qualified buyers from completing a purchase."
Mortgage giant Freddie Mac reported another increase in the national commitment rate for a 30-year fixed rate conventional mortgage, up to 4.46 percent in August, compared to 4.37 percent in July. Despite the recent rise, current mortgage interest rates remain near historic lows.