Pending Home Sales Continue to Rise

For the sixth month in a row, pending home sales have risen. The numbers coming out of July show an increase of 3.2% in July, and that was after pending home sales increased by 3.6% in June. This trend shows that there is continued interest in buying a home right now. Which is not surprising.

Government home mortgage programs have been providing an impetus to buy. It is especially tempting for first time home buyers who have access to a rather generous tax credit when they buy a home. However, time is drawing short for the first time home buyer program. The homes have to be closed on by November 30, 2009. If you take into consideration that it takes 30 – 60 days to close on a home mortgage loan, it is important to realize that you only have about a month to get moving on buying a home if you want the tax credit.

Low prices on foreclosures are also providing a catalyst for home buying, and low mortgage interest rates have had their place as well. However, it is worth noting that as demand continues to rise, things might change.