Mortgage rates, at a new record low of 3.62% for a 30-year fixed and 2.89% for a 15-year, tend to follow along with the 10-year US Treasury note. As demand for Treasury bonds increase (considered a safer inventment in times of economic uncertainty), the yield falls.
This trending of the mortgage rates record lows has brought some relief to the slowly recovering housing market. According to the National Association of Realtors, pending home sales rose in May, matching the highest level in the past two years, and are well above year-ago levels. Monthly and annual gains were seen throughout the country.
We are certainly seeing a strong come back here in the Tampa Bay market! Inventory continues at record low levels and the mortgage lender still have a tight fist around our buyers taking advantage of these low rates. Lawrence Yun, NAR chief economist, said longer term comparisons are more relevant. “The housing market is clearly superior this year compared with the past four years. The latest increase in home contract signings marks 13 consecutive months of year-over-year gains. Actual closings for existing-home sales have been notably higher since the beginning of the year and we’re on track to see a 9 to 10 percent improvement in total sales for 2012.”
If you are interested in exploring a purchase along the pristine beaches of Tampa Bay, let The PURTEE Team help! We bring the advantage of excellent market knowledge and experience to every transaction.
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