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A Resource For Home Buyers

We want to be a one-stop home buying resource for you, and one way we’re doing this, is by providing helpful tips and information about the mortgage industry, buying and selling your home – and many other useful topics that you’ll likely encounter on your path to home ownership. We’re confident that you’ll learn something new every time you visit this page.

June home sales edge down while prices climb

June home sales edge down while prices climb

New home construction declined in June, doing little to ease pressure caused by low inventory.

The 1,173,000 housing starts in June represented a 12.3 percent drop from May's numbers, according to the U.S. Census Bureau. The look ahead doesn't provide much promise - there were 1,273,000 building permits that month, 2.2 percent lower than those issued in May. The 1,261,000 home construction projects that wrapped up in June was on par with May's numbers.

The large drop in starts brought housing starts to its lowest rate since November 2016, Bloomberg reported. The housing starts data wasn't all bad, though. Housing completions rose 2.2 percent year-over-year, which could help lessen homebuyer stress.

Uptick in inventory

Total housing inventory at the end of the month came to 1.95 million, a 4.3-month supply and 0.5 percent above that available at the end of June 2017. This is the first year-over-year inventory increase since June 2015, according to a press release from the National Association of Realtors. However, NAR Chief Economist Lawrence Yun pointed out that the small uptick won't go far to meet buyer demand.

" … It remains to be seen if this modest increase will stick, given the fact that the robust economy is bringing more interested buyers into the market, and new home construction is failing to keep up," Yun said in a press release.

Existing home sales also fell in June for the third consecutive month to a seasonally adjusted annual rate of 5.38 million. The median single-family home price was $279,300, a year-over-year increase of 5.2 percent. As prices climb and inventory stays low, many homebuyers may be forced to leave the housing market disappointed.

Improve your homebuying luck

Prospective homebuyers may find the real estate market to be challenging, but there are a few actions they can take to improve their chances at closing on a house.

Know the difference between your wants and needs. If you're willing to compromise on certain aspects of the home, you may find a great home more easily.

Be ready to act fast. The typical home stayed on the market for 26 days - that's not very long in the homebuying world. When you're ready to move quickly, you'll be more likely to snag your top choice.

Get pre-approved by The Federal Savings Bank. A pre-approval letter helps you determine your budget, make a faster offer and get your mortgage approved quicker. To begin the process, fill out the application on The Federal Savings Bank's website.