We recently reported that new home sales for January had reached the lowest point in 50 years. However, it turns out that new home sales for February have now reached a new record low that beat the previous month’s low. While the low sales may have had something to do with slightly-increased mortgage rates near the beginning of the year, this is not great news for the housing market.
The Numbers Continue to Drop
Just one month after seeing an upwardly revised low of 315,000, which was said to be the lowest point for new home sales in nearly 50 years, the numbers for February dropped to the lowest point ever seen by the Census Bureau, 308,000, which is a 2.2 percent drop from January.
Why the Numbers Are Dropping
Some experts believe that while mortgage rates could have a little to do with the drop in number, bad weather is more to blame. It’s probable that the storms that hit the Northeast and Midwest discouraged potential homebuyers from going out and looking for homes.
Unfortunately, if the market doesn’t pick up, it could be nearly impossible to sell new homes that have just hit the market. In fact, at the rate homes sold in February, it would take 9.2 months to sell the 236,000 homes that just came available in February.
Buy Your Home Sooner than Later
A recent report Money Magazine explained that home prices were expected to appreciate around the country in 2010, which means you could soon expect to pay more for a home you purchase the longer you wait. So now is the time to not only get in before prices and mortgage rates increase, but also before the home buyer tax credit expires for those signing the contract at the end of April.
If you’re looking to get a home loan and don’t know where to turn, visit Go Banking Rates for more information.
