New Home Sales Contracts Increase in June

Mary Eatock

Mortgage availability appears to have been considerably higher in June, as pending home sales improved from the month before, according to the National Association of Realtors.

The associations Pending Home Sales Index indicates a rise of 2.4 percent from May. By months end, the national PHSI was 90.9 nearly 20 percent higher than the same month in 2010.

Lawrence Yun, chief economist for NAR, stated the numbers for June are solid, especially considering pending home sales increased in May as well. However, he added more can be done for home sales to jump and a housing recovery to get underway.

The best way to ensure a more solid recovery in housing is to simply return to normal, sound credit standards so more creditworthy home buyers can get a mortgage, Yun said.

Home loan affordability could continue to lessen as the year progresses, possibly hurting mortgage volume. Freddie Mac reports the average rate for a 30-year fixed-rate mortgage rose to end July.

Property Owner