More potential buyers signed contracts to buy a house or condo in November, with pending sales of existing homes up 0.8 percent from the previous month.
The National Association of Realtors says pending existing home sales were up 4.1 percent from a year ago, the highest year-over-year gain since August 2013. It was also the third consecutive month pending sales were higher than year-ago levels.
“The consistent economic growth and steady hiring we’ve seen in the second half of this year is giving buyers enough assurance to consider purchasing a home before year’s end,” says NAR chief economist Lawrence Yun. “With rents now rising [to] a seven-year high, historically low rates and moderating price growth are likely to entice more buyers to enter the market in upcoming months.”
Buyers with excellent credit are also getting approved with lower down payments.
The NAR says the median downpayment in 2014 ranged from 6 percent for first-time buyers to 13 percent for repeat buyers.
Freddie Mac (OTC: FMCC) Wednesday reported the average rate on a 30-year fixed-rate mortgage rose slightly this week to 3.87 percent, from 3.83 percent last week.
