Existing-Home Sales Surge Back in December
Existing-home sales snapped back solidly in December as more buyers reached the market before the end of the year, and the delayed closings resulting from the rollout of the Consumer Financial Protection Bureau’s Know Before You Owe initiative pushed a portion of November’s would-be transactions into last month’s figure, according to the National Association of Realtors®.
What You Need to Know
Lawrence Yun, NAR’s Chief Economist, said “the prospect of higher mortgage rates in coming months and warm November and December weather allowed more homes to close before the end of the year.”
Low mortgage rates mean lower mortgage payments and more affordable homes,which encourages home buying. Higher rates have the opposite effect and can discourage home buying or require that buyers shop for smaller, less expensive homes.
Learn more about mortgage rates: Will Rising Interest Rates Threaten Your Home Value?