U.S. Home Sales Jump Due to Home Prices Declining and Mortgage Rates Dropping

U.S. Home Sales Jump Due to Home Prices Declining and Mortgage Rates Dropping

GREAT article on Bloomberg today that we absolutely have to share with our readers. The third straight year of average declining U.S. home prices is creating a boost in home sales. Plus, mortgage rates are currently back down near historic low levels and home buyers are rushing to take advantage of this double whammy (lowest mortgage rates in a generation + lowest home prices in years). This is all happening despite home prices that continue to decline. I know this discouraging fact all too well. The home I bought in May 2009 has supposedly already lost (on least on paper) more than 10% of its value since I purchased it. And I paid 30% less than the previous owners paid just three years earlier (despite them doing several very nice updates during that time). Regardless, new (and used) home buyers are taking advantage of great prices and great mortgage rates. Very smart of them, if you ask me. Here’s a quick summary of the main points of the article on Bloomberg: Lower home prices driving sales Fear that mortgage rates will rise helping to motivate folks Median prices at the lowest level since 2002 Prices are 31% lower than the 2006 peak Job market gaining “some” traction Home price bottom…is near Here’s a little bit directly from the article: “The third decline in U.S. home prices in three years is driving a pickup in sales as bargain hunters rush to buy before mortgage rates rise, even as values may slump…

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