Low Mortgage Rates Draw Home Buyers

Low mortgage rates drew more buyers into the market in August, boosting sales of previously owned homes to a 15-month high.

David Lereah, an economist with the Mortgage Bankers Association, noted that rates are dropping again and leading to further shrinkage in housing inventories.

“You take the interest rate environment and combine it with the supply coming down and you have a very favorable backdrop for housing construction,” he said.

President Edmund G. Woods Jr. of the National Association of Realtors agreed.

“Buyers have taken advantage of the low mortgage rates and will continue to do so through the end of the year as they feel confident that the economy is in recovery, helping the housing market strengthen,” he said.

The real-estate group reported Monday that sales of previously owned single-family homes totaled 4.11 million at a seasonally adjusted annual rate in August.