Pending Home Sales On The Rise
Improvement is projected for existing home sales in the months ahead, with broader gains by the fourth quarter as buyers take advantage of new provisions afforded by the Housing and Economic Recovery Act of 2009.
According to the latest forecast published by the National Association of Realtors (NAR), the number of pending house sales - those with a signed contract that have not yet closed - increased in all four regions of the country during June. And the newly enacted tax credit now available to first-time buyers should carry this momentum into 2009.
In addition to short-term benefits, the housing stimulus package will also provide long-term relief. Provisions to stem foreclosures are helpful, but an even greater lift to the economy should come from higher mortgage limits and enhancements to FHA's loan programs.
NAR's housing affordability index is also forecast to remain favorable this year, averaging 13 percent higher than in 2007. With roughly 2.5 million first-time homebuyers expected to take advantage of the temporary tax credit, existing home sales are likely to rise 7.0 percent in 2009.
For a free consultation to discuss which type of mortgage loan will work best for you, call Victoria Spannaus at Wachovia Mortgage, FSB. at (800) 741-7813 or 910-692-6225.
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