Sales of previously owned homes rose to their strongest pace in nearly a decade in June, buoyed by low mortgage rates and an improving economy. Total existing-home sales are now up 3.0 percent from June 2015 (5.41 million) and remain at their highest annual pace since February 2007 (5.79 million).
Freddie Mac also announced that interest rates on 30-year mortgages averaged 3.57 percent in June which is a reduction from May when the same mortgage cost 3.60 percent.
Days on market was 34 days in June which was a slight increase from May when DOM was 32 days, and short sales were reported to be on market for 156 days in June. Distressed sales were 6 percent of sales while cash sales were 22 percent of all closed transactions in June.
The NAR economic press release further indicated that only the Northeast was lower in annual sales rate in June (down 1.3 percent) with all other regions higher, and the current absorption rate (which is determined by the total amount of unsold inventory) is at a 4.6-month supply.