Understanding the Correlation Between Mortgage Rates and Home Sale Numbers

Common sense will tell you that the sales of homes increase when mortgage interest rates decline and the sales of homes decreases when mortgage interest rates increase. The logic hinges on the belief that interest rates determine affordability. If rates increase, affordability decreases thus the sales of homes should decrease. The sales of homes in [...]

Home Sales Fall in May As Federal Tax Credits Expire

The US housing market appears in danger of another crisis which could further hinder the recovery of the overall economy. Sales of previously owned homes fell in May as the federal tax credits for home buyers came to an end. In addition, nearly a third of all May sales came from foreclosures or other distressed [...]