Sales of single-family homes in the United States increased by 8.3% despite higher mortgage rates, the Commerce Department revealed in a Reuters report. The sale of 497,000 units in June was the highest since the housing crisis which occurred in 2008. This was way more than the 482,000-unit rate earlier predicted by economists.
Economists like Bob Walters of Quicken Loans in Detroit believe that the increased urgency could be due to buyers rushing in to lock in lower rates. "The recent increase in mortgage rates hasn't slowed demand as long as home affordability remains high. We are, however, seeing an increased urgency from potential new home buyers as they move to secure today's historically low rates," said Quicken's chief economist. Mortgage rates continued to remain low last week despite the anticipated reduction of the Federal Reserve's monetary stimulus later in the year.
The strong housing market had also increased factory activity as orders poured into the sector.
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