Refinance mortgage loans low interest rates

Home buying activity picked up significantly in January, according to a report released today by the National Association of Realtors (NAR). Sales of existing homes last month increased 3.0 percent compared to December 2006, NAR reports. This was the largest month-over-month percentage gain in two years.

"Today's report will certainly buoy an ailing housing market. The question that remains however is whether the increase in existing home sales is due to the low long-term interest rates we have been experiencing for the past year, or did the unseasonably warm weather in January draw more people into the market?" said Bob Walters, chief economist of Quicken Loans. "It will be interesting to see if the growth trend continues in the coming months, and whether tomorrow's new home sales report also shows an increase in home buying activity."

The NAR also reported that the inventory of unsold homes rose 2.9 percent in January, equaling approximately a 6.6 month supply at the current sales pace.

Publish Date: 02/27/2007