Favorable Interest Rates Drive New Home Sales Higher
Mortgage News from Quicken Loans
The U.S. Census Bureau and the Department of Housing and Urban Development announced today that sales of new, single-family homes in March jumped 2.6 percent compared to February's numbers.
Bob Walters, chief economist of Quicken Loans, says that a combination of unsold homes, currently at a 7.8-month supply, and favorable financing are driving new home purchases.
"Consumers are taking advantage of favorable market conditions, with many builders looking to offload their stagnant inventory of unsold homes at very favorable prices," Walters said. "New home sales have undoubtedly been aided by long-term interest rates that remain in the low six percent range, providing affordable financing to help buyers into their new homes."
This article is reprinted by permission from Quicken Loans © 2007 Quicken Loans Inc. All rights reserved.
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