Just a quick note to address some emails we’ve received, regarding a recent story in The Detroit News citing a Commerce Department report on new home sales. Yes, new homes sales were down around 13% in July; no, the rise in mortgage rates aren’t the main reason. True, mortgage rates did jump up a bit – but rising to roughly 4.5% on a 30 year fixed mortgage means rates went from “are you f*ing kidding me” low, to “sh*t, that’s still really low” low. Hardly a reason to scare that many people away from the market.
The likely reason for the drop is availability among *some* builders. What do we mean? Many builders maintained conservative land positions during the recession and when the market began heating up again, some have struggled to acquire enough lots to meet demand. The result? Some builders are releasing lots slowly, in order to ensure something will always be forthcoming in the event that new land acquisitions aren’t imminent. This naturally leads to slower sales, but that certainly doesn’t mean the demand isn’t there.
If you’re looking for a new home, talk to us. We can help you lock in your interest rate while they remain at “sh*t, that’s still really low” levels, as well as locate the homes/lots that no one else is seeing.