NAR reports that existing home sales rose 7.7% in August to a seasonally adjusted annual rate of 5.03 million – an 18% increase over August 2010.
Lawrence Yun, NAR chief economist, said “favorable affordability conditions and rising rents are underlying motivations” for the increase in sales. Investors were also more active buying foreclosures, accounting for 22% of purchases. First-time homebuyers accounted for 32% of sales.
With Freddie Mac reporting average conventional 30-year fixed mortgage rates at 4.27%, now is a great time to for consumers to buy.