U.S. home sales soar despite climbing interest rates

TRD New York /
Sep.September 19, 2013 04:53 PM

Rising interest rates did little to deter the sale of previously-owned U.S. homes in August. Homebuyers looking to lock in rates before they climbed even further drove purchases up 1.7 percent, marking an annual rate of 5.48 million sales — the most since February 2007, according to figures from the National Association of Realtors.

Transactions begun in June or July, when buyers were angling for mortgage rates at near-record lows, were reflected in the data. But the month was viewed by some as a “last hurrah” before the number of sales begin to reflect a decline related to higher prices and upward-bound mortgage rates. A 30-year home loan rate averaged 4.5 percent in the week ended today, near the highest level sine July 2011, according to data from Freddie Mac cited by Bloomberg News.

“We’ll continue to see increases in home sales and prices, though not as fast as in August,” Gus Faucher, a senior economist in Pittsburgh at PNC Financial Services Group, told Bloomberg.

There were 2.25 million previously-owned homes on the market at the end of August, the lowest number for that month since 2002. Compared to July, when it would have taken five months to sell those houses, it would take 4.9 months at the current sales pace. [Bloomberg News]Julie Strickland


Related Articles

arrow_forward_ios
Home prices are on the rise, and homeowners are opting to stay in their homes longer (Credit: iStock)

Home prices accelerate nationally as owners stay longer

Realogy CEO Ryan Schneider (Credit: iStock)

Realogy’s plan to stop the iBuyers from gaining a foothold in Chicago

136 Clinton Avenue (Credit: iStock)

How to sell a haunted listing

Federal Reserve Chairman Jerome Powell (Credit: Getty Images)

Fed cuts rates, signaling caution ahead for real estate investors

South Florida dodged a bullet with Hurricane Dorian. Here’s what that means for the resi market

South Florida dodged a bullet with Hurricane Dorian. Here’s what that means for the resi market

(Credit: iStock)

Mortgage REITs were doing great — until the yield curve inverted

Gary Keller of Keller Williams (Credit: iStock and Wikipedia)

Here’s how much it will cost you to sell your home on an iBuying site

Bringing some sunshine to South Florida’s opaque resi report outlook

Bringing some sunshine to South Florida’s opaque resi report outlook

arrow_forward_ios