Prices and Rates Head in Same Direction
According to Redfin, home sales across the U.S. in April surged 5.4% from 2014. And sales of newly listed homes increased at least 10% for the third straight month, posting a 10.7% gain.
However, sales weren’t the only thing to rise.
Last month, home prices throughout most of the country rose an average of 6.5% y-o-y. While counties like San Diego, saw price gains of 7.9% from April 2014.
Mortgage rates followed suit as well. Thanks mainly to a persistently improving labor market which added 223k new jobs in April and 10-year Treasury yields continuing to climb.
So what do these increases mean for housing?
Even though we saw a significant uptick in existing home sales during April, if home prices and mortgage rates continue to follow each other in step-rate fashion, this could put a damper on sales.
That’s why, if you’re starting to think about searching for your next dream home, you might not want to wait much longer. There’s no telling how far interest rates and prices will continue on their journey skyward. Contact me today to lock in the best mortgage rate possible.