The increase in sales of previously owned homes and new single-family residences in April illustrates growing demand for owner-occupied housing and the improving ability of prospective homebuyers to save for downpayments and handle monthly mortgage obligations. Interest rates on residential mortgages remain near historic lows, maintaining housing affordability and stimulating a higher volume of single-family home purchases even as prices continue to rise and for-sale inventory remains limited. Low interest rates and a slight moderation in mortgage lending criteria will continue to propel the single-family home market in the near term, and builders could be encouraged to introduce more starter homes to the construction cycle to capture rising demand.
Source: Marcus & Millichap
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