Rates for 30-year home loans edged up this week, remaining above record lows reached over the spring. The average rate for a 30-year fixed mortgage was 5.42 percent, up from 5.38 percent a week earlier, mortgage company Freddie Mac said Thursday.
Sales of existing houses came in on the upside for May, with a 2.4 percent increase nationally over the month earlier. That's the first consecutive monthly gain in resales in the U.S. since way back in September of 2005. But then again -- last month also saw sales of newly-constructed houses fall by six tenths of a percent, as low-priced foreclosures swamped the market and pulled buyers away from builders' showrooms and subdivisions. Meanwhile, prices in both the resale and the new construction segments continued to head downwards. According to the National Association of Realtors, the median home sale price in May was $173,000, 16 percent below what it was a year earlier.
The number one reason for the drop was the heavy presence of foreclosures carrying rock-bottom prices in many markets. Foreclosures present a different phenomenon than I have seen in my real estate career. These great new deals have presented a dynamic between buyers and sellers that I have not seen since the real state boom of early 2003.
This difficult task is acquiring these listings from Asset Managers or directly from the banks. We were forced to establish a business entity between my real state company, a mortgage company, title agent, attorney and turn key contractor to facilitate any property under any condition. This coalition has yielded 43 transactions this year. we are poised for a strong second half of the year. Stay tuned.
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