Mortgage Rates Could Hurt Summer Sales

Mortgage.info

It is well known that the Summer months are the best months for home sales and for families to nail down a new home purchase. The main reason for this being the best season is that most families want to purchase a new home while their children are out of school and before the schools start in August and September. So, June and July are great months for home sales. Real estate agents love the summer months, until now.

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In the past, real estate agents can count on the summer months to be a great time to get more listings, more sales and make more money. This year the market has been down over 5% in just the last few months according to the MBA or Mortgage Bankers Association. Not only are home sales and new home mortgage applications down, the average mortgage loan value also decreased.

It appears that when the final numbers come out on July 22nd that many real estate agents and mortgage lenders will be surprised. Not only will the numbers be disappointing but the market is not looking good for the rest of the summer months. One of the main reasons the home sales are seeing a dip is because of the slow mortgage rates increase. This seems to have scared off home buyers even though the increased rate is rather small. Many across the U.S. can only hope that the market will change for the better. It appears that the stock market is doing well so it might transfer over to the housing industry. I know that lenders and agents sure hope so.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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