It’s always been a tool in the home builder’s belt but really wasn’t needed with rates so low for so long. The main incentive is buying down mortgage rates. “So what individual builders are doing right now, I’ve seen some builders offer more incentives.” “We’ve seen demand creep back up a little bit but it’s still not at the levels we saw in 20,” Insider housing economy reporter Alcynna Lloyd told Straight Arrow News. A third factor could be boosting new home sales. Those rates are already back on the rise, reaching 6.5% for a 30-year fixed rate mortgage, according to the latest data from Freddie Mac. The NAR said buyers are responding to better affordability and falling mortgage rates in December and January. The pending home sales data follows Friday’s release of new home sales, which was up 7.2% in January, according to the Census Bureau. That result blew away the forecast of 1% for the month. On the other hand, the pending home sales figure in January is up 8.1% from December, rising for the second consecutive month. On one hand, the pending home sales figure is down 24.1% on the year, according to the National Association of Realtors. Pending home sales in January paint a positive and negative picture for the housing market.
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