Mortgage refinances have seen a boost following the continuously decreasing mortgage rates. However, low rates are also driving new home sales. They have brought a jolt of energy for new home purchases. Should rates continue to drop, that should fare well for the spring buying season.
New single-family homes have shot up 7.9% in January with the seasonally adjusted annual rate of 764,000, according to a recent Bankrate article. The latest figure in terms of new single-family homes is a whopping 18.6% higher year over year.
"The ongoing low interest rates have encouraged buyers to purchase homes," says Jing Fu, director of forecasting and analysis at the National Association of Home Builders, according to the report. "Low mortgage rates, along with steady job growth and rising wages, are fueling housing demand."
Interestingly enough, half of the purchases that have caused January sales to increase, were for homes that have yet to be constructed. With new construction likely to increase during the spring buying season, home sales may jump even higher.
To learn more about the current boost in home sales, click here.