The lowest mortgage rates in more than a year pulled prospective home buyers back into the market in May. Existing home sales rebounded by 4.7 percent from the lowest level in nearly three years.
“Rates have come down significantly,” noted economist David Lereah of the Mortgage Bankers Association, who said rising mortgage applications hinted at improved sales in June as well. “I think we’ve hit bottom and are on our way back up.”
May sales totaled a seasonally adjusted 3.55 million annual rate, the National Association of Realtors reported Monday. That was up from 3.39 million in April, when they dropped 6.4 percent to the lowest level since a 3.36 million rate in June 1992.