Home sales spike in September as mortgage rates motivate buyers

Home sales spike in September as mortgage rates motivate buyers

Home sales spike in September as mortgage rates motivate buyers
The sales volume of previously owned homes saw a sharp seven percent increase in September to a seasonally adjusted annualized rate of 6.29 million units. The National Association of Realtors reported this week that despite the median sales price being 13.3 percent higher than it was a year ago, total volume was only down 2.3 percent from September 2020.

The rising home prices appear to be taking their toll on the lower end of the market and on first-time buyers. Homebuyers making their first real estate purchase accounted for 28 percent of total volume, the lowest level recorded since July 2015.

Still, low mortgage rates continue to favor buyers of all demographics. Today, those looking to purchase a new home will find conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.25 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.