Page 2 of 2 Previous
At the end of the first quarter there were 1.99 million houses for sale, 3.1 percent more than last year. At the current sales pace, that inventory would last five months, a level that favors sellers. A supply of six to seven months represents a rough balance between buyers and sellers.
Mortgage interest rates down
Despite the imbalance, buyers have one thing in their favor: Mortgage interest rates are trending down, falling recently to their lowest level this year, according to several national surveys. HSH.com’s Weekly Mortgage Rates Radar showed the average rate for conforming 30-year fixed-rate mortgages fell by seven basis points (0.07 percent) to 4.31 percent.
“The investor rush into stocks has cooled for the moment, and there are plenty of other concerns to keep markets on the defensive,” said Keith Gumbinger, vice president of HSH.com, a publisher of mortgage information. “Although the U.S. economy seems to be picking up some momentum, the effects of slower growth in China and the unstable situation in Ukraine are all contributing to the ongoing bid for Treasury debt, driving yields down and pulling mortgage rates down too.”
Jim Buchta • 612-673-7376