Homebuying activity strong in September

With mortgage rates hovering at all-time lows, consumers continued to show interest in property in September, though industry professional expected a drop-off in activity.

With mortgage rates hovering at all-time lows, consumers continued to show interest in property in September, though industry professional expected a drop-off in activity.

During the month, property data indicates home tours increased 3 percent from August, while offers rose 4 percent, according to a report from Redfin.

"As we have seen all year, demand among homebuyers has increased but that demand is more deep than it is broad," said Redfin CEO Glenn Kelman.

However, weak credit standing and negative equity continue to be notable obstacles for homebuying activity, Kelman add.

Although many underwater households have few options when it comes to selling, the most recent Housing Scorecard from the Obama administration indicates that during the second quarter, nationwide home equity increased to the highest level seen since 2008.

When comparing mortgage records and property data to each other, the result shows homeowner equity spiked 5.9 percent to $7.28 trillion, the report said. As a result, the number of borrowers upside down on their home loans declined 11 percent to 10.8 million. While this is still a significant amount, it was a notable drop from a peak amount of 12.1 million recorded at the end of 2011.



blog comments powered by Disqus