Pending Home Sales Jump 8.2%
home sales
The National Association of Realtors (NAR) in it’s just released report said its pending home-sales index rose to 97.6 from a downwardly revised 90.2 reading in January.
“Pending home sales rose in February, potentially signaling a second surge of home sales in response to the home-buyer tax credit,” the NAR said.
Low Rates – Homebuyers Tax Credit
homebuyers tax credit
The Fed did what they set out to do – purchasing $1.25 Trillion in Mortgage Backed Securities, and succeeding in their plan to lower home loan rates and help stabilize the housing sector. And even though they stretched out the length of the program slightly – in order to soften the impact of the end of the program – the training wheels are now off, the safety net is gone, and home loan rates have already moved higher. In fact – as the Fed will now gradually become a seller of their massive holdings of Mortgage Backed Securities – rates are very likely to continue to move higher still.