Existing-home sales declined slightly in September but continue to out-pace activity from 2010, according to a recent report by the National Association of REALTORS (NAR). Existing-home sales, which include recently purchased single family, townhomes, condominiums, and co-ops, dropped 3 percent to a seasonally adjusted rate of 4.91 million units expected to sell in 2011. This represents an 11.3 percent increase over the pace set last year at this time.

Lawrence Yun, NAR chief economist, sees stability in the market place. "Existing-home sales have bounced around this year, staying relatively close to the current level in most months," he said. "The irony is affordability conditions have improved to historic highs and more creditworthy borrowers are trying to purchase homes, but the share of contract failures is double the level of September 2010. Even so, the volume of successful buyers is higher than a year ago and is remaining fairly stable – this speaks to an unfulfilled demand."

Mortgage backer Freddie Mac reported that mortgage interest rates fell to a record low in September. The average commitment rate for a 30-year, conventional, fixed-rate loan dropped to 4.11 percent in September, down from 4.27 percent in August.  September's rate was almost a quarter point below 2010 interest levels  when similar mortgage loans were offered at 4.35 percent.

Despite the low interest rates, contract failures remain double of what they were just last year. Contract failures - caused by issues with credit, loan underwriting, or appraisal - reached 18 percent in August and September. NAR President Ron Phipps would like to see more access to credit.  "All year we’ve been discussing the fact that many creditworthy home buyers are being denied mortgages,” he said. "We need to remove the roadblocks to a housing recovery."

Investors accounted for 19 percent of September transactions down slight from 22 percent in August.  First-time buyers represented 32 percent of existing-home purchasers, while repeat buyers made up the balance. 

Check with your insurance agent for more information on these issues, and any others. If you don't have an  insurance agent, we have access to several top-notch agents we can refer you to with confidence.

Existing-home sales declined slightly in September but continue to out-pace activity from 2010, according to a recent report by the National Association of REALTORS (NAR). Existing-home sales, which include recently purchased single family, townhomes, condominiums, and co-ops, dropped 3 percent to a seasonally adjusted rate of 4.91 million units expected to sell in 2011. This represents an 11.3 percent increase over the pace set last year at this time.

Lawrence Yun, NAR chief economist, sees stability in the market place. "Existing-home sales have bounced around this year, staying relatively close to the current level in most months," he said. "The irony is affordability conditions have improved to historic highs and more creditworthy borrowers are trying to purchase homes, but the share of contract failures is double the level of September 2010. Even so, the volume of successful buyers is higher than a year ago and is remaining fairly stable – this speaks to an unfulfilled demand."

Mortgage backer Freddie Mac reported that mortgage interest rates fell to a record low in September. The average commitment rate for a 30-year, conventional, fixed-rate loan dropped to 4.11 percent in September, down from 4.27 percent in August.  September's rate was almost a quarter point below 2010 interest levels  when similar mortgage loans were offered at 4.35 percent.

Despite the low interest rates, contract failures remain double of what they were just last year. Contract failures - caused by issues with credit, loan underwriting, or appraisal - reached 18 percent in August and September. NAR President Ron Phipps would like to see more access to credit.  "All year we’ve been discussing the fact that many creditworthy home buyers are being denied mortgages,” he said. "We need to remove the roadblocks to a housing recovery."

Investors accounted for 19 percent of September transactions down slight from 22 percent in August.  First-time buyers represented 32 percent of existing-home purchasers, while repeat buyers made up the balance. 

Check with your insurance agent for more information on these issues, and any others. If you don't have an  insurance agent, we have access to several top-notch agents we can refer you to with confidence.