Recent reports have indicated that the national housing market bounced back strongly into what hopefuls predict will be a sustainable recovery. This is a great opportunity for buyers considering new homes in Loudoun County, allowing them to take advantage of the low mortgage rates while they last.
During the months leading up to mid-July, the U.S. housing market watched as long-term mortgage rates matched or hit lows that haven’t been seen in at least 40 years. A 30-year fixed loan dropped to 3.35% and has only risen to 3.66% since. Five-year adjustable rates fell to a low of 2.74%, and have inched up just slightly to 2.8% since July. Even a slight increase in the rate can be significant difference in monthly mortgage payments.
Rising mortgage rates, however, are not the only aspect of the housing market that have been showing gains. CNNMoney reported that, according to a recent Census Bureau report, home sales were up in July by 25% in a year-over-year comparison; existing-home sales increased by 10% over that same period of time, and applications for residential building permits increased by 30%. All positive signs for the industry.
The rise in home sales has brought an increase in home prices. The S&P/Case-Shiller national home price index, which covers more than 80% of the U.S. housing market, increased by 6.9% in April-June compared to Jan-March of 2012. National home prices showed a gain of 1.2% when compared to the same time last year. David Blitzer, a spokesman for S&P, stated that, “We seem to be witnessing exactly what we needed for a sustained recovery; monthly increases coupled with improving annual rates of change,” he said. “The market may have finally turned around.”
According to Fannie Mae Chief Economist, Doug Duncan, the rise in home prices is likely to push prospective home buyers off of the fence they were sitting on, waiting out the price decline. “Their perception that we hit the bottom takes out the risk of buying into a falling market, ” Duncan said. “That should increase demand, particularly if they also believe that mortgage rates have reached a bottom as well.”
All signs point towards a U.S. real estate market that is picking itself back up from a period of long-suffering. The demand for new homes for sale evidently is increasing, as the market has seen a boost in sales that has been steady across the past spring and summer months. As the numbers for home sales grow, so do the prices of the homes. The fact that mortgage rates are still near record lows, for the time being, is very good incentive for first-time home buyers to jump on the current market and buy a new home for sale in a new Loudoun County community.