Housing Sales Continue to Rise

Home Sales Up

Mortgage rates at their lowest marks in almost half a century, combined with a market flooded with foreclosures, have led to continued positive numbers for housing sales in the U.S.

Although the numbers look positive on the surface, some experts caution that the overall effect on the housing market may not be as positive due to the vast discounts on many of the sales. Overall, real estate prices continue to struggle as many homes are selling as “short sales” in which the home is sold for less that the homeowner owes on the home. These sales continue driving home values in the surrounding community down with it.

Many seem to believe that the market will finally begin to stabilize over the next 6 months, but will continue to lose a little more ground until then. There has been some small increase in interest rates in recent weeks, however rates are still below 5% for both 30 year and 15 year loans.