California pending home sales jump in February
Apr 2 2013 3:46PM
Pending home sales in California increased in February, which could lead to a jump in the number of homes for sale in Los Angeles under agreement.
According to the California Association of Realtors, pending home sales increased from the previous month, but fell below levels seen a year ago.
CAR's Pending Home Sales Index increased 8.7 percent to a mark of 110.2 in February, which could be a good sign for the future of the Golden State's housing market.
One of the driving factors behind the bump in pending home sales might have been the fact that mortgage rates have been hovering around all-time lows. According to Freddie Mac's latest Primary Mortgage Market, 15- and 30-year fixed-rate mortgages edged up slightly in the week ending March 28, but remained well below averages seen a year ago at this time.
"Low and relatively steady mortgage rates are invigorating the housing market," said Freddie Mac vice president and chief economist Frank Nothaft. "For instance, existing home sales over January and February experienced the strongest two-month pace since November 2009, while new home sales were the strongest since August and September 2008."
If mortgage rates continue to remain affordable, Los Angeles Southwest real estate could flourish in the coming months.
