Commenting on the second-highest level of sales for previously owned U.S. homes in more than six years last month, a former senior vice president at Fannie Mae notes:
It’s not unusual, when you see a spike in mortgage rates, to see a couple months later a spike in closed sales. People saw the beginning of the trend and accelerated their pattern of buying. In all likelihood, within a month or two, you’re likely to see the pace of sales slow.
It was at the beginning of June we first noted the average 30-year rate had ticked up to over 4 percent for the first time since 2011, up from an all-time low of 3.31 percent this past November and 3.35 percent this past May. And in July, homes sales in San Francisco spiked to a nine-year high.
As of today, the average 30-year rate is hovering around 4.6 percent, up from 4.4 percent the week before. The rate for a 30-year fixed mortgage has averaged 6.75 percent since 1990, 8.67 percent since 1971.
∙ Sales of U.S. Existing Homes Rise to Highest Since 2009 [Bloomberg]
∙ Fixed Mortgage Rates Tick Up To Near Two-Year High [SocketSite]
∙ Home Sales Spike In San Francisco To Nine Year High In July [SocketSite]