It seems like home rates are starting to make a downturn. According to the National Association of Realtors (NAR), the average rate of an existing home has dropped to around $247,000 in October. City Creek Mortgage and other mortgage planners note this is good news for those who are planning to purchase a home anytime soon.
The cause for the sudden drop
Last June, home rates reached their year high of nearly $263,300. Luckily, as the months passed, the prices for existing homes dropped by over $16,000. Even though the data revealed by NAR displayed rates dipping less than one percent last October, the lowest drop still means great news for homebuyers. This is a massive cause for celebration, particularly with the competitive market and the mortgage predictions for 2018.
NAR did agree that potential buyers with limited budget see these small drops in home rates as a great help. Excluding the West where home prices grew 0.48 percent, existing home rates fell in every state all over the nation. Since September, the South witnessed the greatest price dip, with a 1.1 percent decrease.
Controlling lower rates
As predicted, homebuyers are exploiting these lower rates. The data published by NAR reveals that home sales grew by 2 percent from September to October. Even though both Midwest and South observed declines of 1.5 percent and 1.8 percent respectively, monthly closings increased for the month.
NAR explained that this should not be a cause for concern. They believe that Hurricanes Irma and Harvey were behind these in the South. These hurricanes struck much of Florida and the Houston area that temporarily stopped the majority of sales.
According to NAR Chief Economist Lawrence Yun, a more improved employment market is making the matter a bit better. He says that the job increase is beginning to push up salaries gradually, thus giving residents more guarantee that this is the perfect time to purchase a home.