Real Estate Market Showing Hopeful Signs for Lenders

The home lending industry has reason for optimism with previously owned homes rising by 1.3% in July showing the first month-over-month increase since January.

The Northeast showed the most gains not only in sales but also in price increases for the United States. Lower interest rates and more houses listed are the two catalysts for growth.

But the sales came before the summer when interest rates were still high, so August and September will be sure to indicate a more robust real estate market opening up lending opportunities for the banking industry. Cash offers are expected to come down with interest rates lowering, but were still at a sky high 27% of all sales last month.

The number of homes listed year over year increased by close to 20% even as home prices continue to rise by more than 4% year over year nationally, and more than 10% in some parts of the northeast.

Price increases and availability are both expected to grow throughout the remainder of third quarter and into October.