National Home Sales Drop in June

While declining mortgage rates initially encouraged Americans to purchase homes, there has been a holdup. In June, Americans purchased fewer homes than they had in May, but realtors are convinced that this is just a temporary setback. 

According to a report in the Courier Journal, home sales dropped by 5.4% to the lowest they have been since October 2011. First-time home buyers made up 30% of the total of home sales in June while those purchasing new homes made up 40%. 

While the drop has been quite significant, realtors are not quick to assume that this is a bad omen. With mortgage rates an all-time low, they remain optimistic, stating that this is just a temporary phrase: 

"It is only one month and the rest of the housing indicators have all continued to show improvement," says Jennifer Lee of BMO Capital Markets.

American mortgage rates have recently dropped significantly.  This week, 30-year mortgage rates dropped .03% to 3.53% while 15-year mortgage rates dropped to 2.83%. So, although June was a disappointing month, it is hoped that July will bare better results, as declining mortgage rates continue to encourage home purchases.