Cash sales for homes rose, Economic growth up in Q3, Mortgage rates continue to rise this week
December 22, 2016
Cash sales for homes rose for the third straight month in September though below the 2015 levels, reports analytics firm CoreLogic. Cash sales made up 31.7% of total home sales in September, down 1.3% from last year, but up slightly from August’s 31.1%. By comparison, back in January of 2011, cash sales peaked at 46.6% of total sales, while before the Great Recession, cash sales made up 25% of total sales.
Economic growth ramped up in the third quarter of 2016 led by higher consumer spending and business investments. The final reading for third quarter Gross Domestic Product rose by 3.5%, above the 3.3% expected and well above the anemic readings of 1.4% in the second quarter and 0.8% in the first quarter. Within the report, consumer spending was up 3.0% from 2.8%. Business investments surged 1.4% from 0.1%.
Mortgage rates continued to rise this week as the post-election results lifted Stock prices, which pushed rates higher. Freddie Mac reported on Thursday that the 30-year fixed conventional mortgage rate increased to 4.30% from 4.16% with 0.5 in points. Points are fees paid to a lender equal to 1% of the loan amount. Mortgage rates are at the highest levels in more than two years.