With no quick fix to improve the economy, some Americans are deciding to move on with their lives while still attempting to search for a good bargain before every major purchase.
It seems as if the housing market contains the biggest bargains. Homebuyers are stepping up their purchases before rising prices and mortgage rates make buying more expensive.
July home sales rose 2.3 percent from June, and 10.4 percent from a year earlier, to an annual rate of 4.47 million, according to a report from the National Association of Realtors.
The market has been bolstered by low home prices and mortgage rates, according to Lawrence Yun, NAR's chief economist, but the inability of some potential buyers to obtain financing has cut into sales.
"The market is constrained by tight lending standards and shrinking inventory supplies, so housing could easily be much stronger without these frictions," he said.
July sales were slightly below forecasts from a panel of industry experts put together by Briefing.com, which had predicted sales of 4.57 million.
Stuart Hoffman, chief economist for PNC Financial, said the psychology of the market has turned. With mortgage rates coming up off of historic lows and home prices on the rise, homebuyers are more likely to think that housing will get more expensive, making them more inclined to buy.
NAR reported a rise in median home price of 9.6% in July, compared with a year earlier, to $187,300. Listing inventory has fallen to a 6.5 month supply, down 24% from a year ago.
With the election less than four months away, the housing market, as well as the economy and its future will be a top decisive factor among voters.
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