Sales of existing U.S. homes rose to an annual high in July, according to the National Association of Realtors, helped by mortgage rates that have fallen to their lowest level in over a year.
The NAR reported that total existing-home sales – including sales of single-family homes, townhomes, condos and co-ops – grew 2.4 percent in July to a seasonally adjusted annual pace of 5.15 million, up from 5.03 million in June and the fourth straight month of sales increases. However, compared with July 2013, sales are still down 4.3 percent.
Interest rates on a 30-year fixed-rate mortgage dipped to an average of 4.13 percent in July, according to Freddie Mac, down from 4.16 percent in June. Rates have not been that low in over a year, since June 2013.
But rates will not remain so low forever, Yun cautioned. “Although interest rates have fallen in recent months, median family incomes are still lagging behind price gains, and mortgage rates will inevitably rise with the upcoming changes in monetary policy,” he said.