While home sales are reportedly slowing in the Capital Region, sales nationwide are picking up, reports The Wall Street Journal.
Home sales across the country increased 3.1% in January from the prior month to a seasonally adjusted annual rate of 4 million, the highest level since August, the National Association of Realtors said Thursday.
January existing home sales, which make up most of the housing market, fell 1.7% from a year earlier, but rose compared to the previous month.
Mortgage rates have fallen about one percentage point since last fall, spurring some buyers to return to the market even though home prices remain near record highs.
A drop in rates since October has made home purchasing slightly more affordable for buyers and spurred more home-shopping activity. The average rate on a 30-year fixed mortgage has hovered between 6.6% and 6.8% so far this year, down from a recent high of 7.79% in October, according to Freddie Mac.
But buyers are still facing an expensive market with little to choose from. The inventory of homes for sale is unusually low nationwide, because homeowners are reluctant to sell and trade in their current low mortgage rates for higher ones. The low supply of homes on the market is pushing home prices higher.
