New Home Sales come in at 504,000 annualized units, way above the 435,000 expected by Wall Street. New Sales jumped 18% in August (the largest increase in over 22 years), and have increased 33% from a year ago! The median price of said new home is now at $276,600, and increase of 8% over this time in 2013. So far this morning the markets don’t know which way to react; stocks and bonds have whip-sawed back and forth in early trading. Thirty year FHA loans are at 3.5% and Conventional loans are at 4.125%. Fifteen year rates are way lower at 3.0% (APR will be higher, depending on the loan and down payment amounts, and amortization term–as closing costs and the presence of mortgage insurance affect each loan differently.)
