The coronavirus pandemic may have stalled the housing market in April but new data shows that that downturn was short-lived. According to Redfin, contracts to buy a home saw a substantial increase from April to May, an early indication that recovery for the housing market may not be as prolonged as other sectors of the economy.
“Although the housing market was still mostly stalled in May, it’s worth noting that homes under contract to be sold jumped 33 percent between April and May after two consecutive months of decline,” said Redfin lead economist Taylor Marr. “This is a key leading indicator for home sales in June and July.”
Still, sales have a long way to climb to surpass last year’s figures. Home sales in May were down 30.8 percent compared to the same month last year.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.625 percent.
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