Info That Hits Us Where We Live – Home Prices Remain Attractive
QUOTE OF THE WEEK… “Having complete control over your own mind will allow you to manage any situation at hand. If you can maintain a positive approach, you can achieve anything.” –Tom Blandi, French literary theorist author
INFO THAT HITS US WHERE WE LIVE… The standard response from the pundits to last week’s 1.3% drop in Pending Home Sales for July could make it hard to maintain a positive approach. The typical explanation was that the drop was all due to the recent uptick in mortgage rates. But the truth is, slightly higher mortgage rates are only causing a drop in refinances. That’s because for buyers, mortgage rates are still historically low and home prices remain attractive. Supporting this, the Mortgage Bankers Association Purchase Loan Index was up 2% for the week ending August 23 and is up 6% on an annual basis.
Here’s some more positive news ignored by the pundits. Even with the small monthly drop, Pending Home Sales were up 6.7% in July from the year before. In fact, they’ve now beaten year-ago levels for 27 months in a row. Those eager to report the end of the housing recovery were also disappointed to see the latest S&P/Case-Shiller Home Price Index. Home prices in 20 major metros were up 2.2% in June and are up 12.1% year-over-year. And this time around, all 20 cities posted both monthly and annual gains.
Orson B.Klender, Associate Broker
Keller Williams Realty Saratoga Springs
38 High Rock Ave, Saratoga Springs, NY 12866
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