Thursday, August 29, 2013

The Recent Effect Of Rising Interest Rates

Media Contact: Walter Molony

National Association of Realtors chief economist Lawrence Yun:

Rising interest rates caused an initial surge in closed sales then a slight pause in pending sales. Closed sales have not decreased at this point.  

Overall:
Recent months of pending contracts are “still the highest activity level since 2006.”
The real estate market “momentum is still solid” 
Interest Rates are still close to a 60 year low.  
Affordability is at an all time high, which is why there is a strong demand for more housing.        
There is a housing shortage which puts pressure on builders to meet this demand in the market.   “the current inventory is at a historic low point” 

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