Weekly Economic Update for August 26, 2013
- Published: Monday, 26 August 2013 13:59
- Written by Gretchen Brown
ARE COSTLIER MORTGAGES IMPACTING HOME SALES?
On Friday, the Census Bureau announced an unexpected 13.4% drop in new home purchases for July. In contrast to that news, the National Association of Realtors stated that existing home sales rose 6.5% last month. So what is the takeaway here? Most new home purchase contracts close months in the future, and many buyers of existing homes may have locked in the rates of home loans in spring. Is the dip in new home buying a direct, alarming reflection of the recent jump in mortgage rates? Will it give the Federal Reserve pause about tapering?1