The National Association of Realtors reported today that for the first time in 7 months, home sales increased 2.9 percent. In February, 5.03 million units sold compared to 4.89 million units sold in January. In my opinion, this is another signal that the housing correction is plateauing and an appreciation cycle is on it's way.
The Federal Reserve has been very proactive in recent weeks to help stimulate the economy. Last week, Fed. Chairman reduced the Fed Fund Rate by 3/4 basis points.
The Congress has pushed through the new Conforming loan limit which has been raised from $417,000 to $625,000. This should stimulate the refinancing sector as those with higher Jumbo rates look to reduce their interest rate to a conforming one.
If we get another increase in home sales next month, I think it'll be the confirmation that the bottom has not only been reached, but an appreciation cycle is on it's way.
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