First-time buyers usually purchase lower-priced homes, but sales of homes priced under $100,000 were down more than 7 percent in September from a year ago, while sales of homes priced above $500,000 were up over 40 percent, according to the NAR.
(Read more: Map: Tracking the recovery)
As the housing market heads into a colder, slower season, home price gains may moderate some. Mortgage rates could as well, given the turmoil in Washington, D.C., over the nation’s debt limit.
“After speculation of drastic cuts in bond purchasing, last month’s announcement from the Federal Reserve to not lower its amount of monthly bond purchases was welcomed by the mortgage industry,” said Don Frommeyer, president of the National Association of Mortgage Brokers. “The strategic move keeps interest rates low and helps continue to attract buyers to the housing market.”
(Read more: JPMorgan deal could curtail credit)
Confidence, however, will continue to reign supreme in the housing recovery, and if the government shuts down yet again, and lawmakers come to yet another impasse over the debt limit, buyers may stay on the sidelines. New mortgage regulations also go into effect on Jan. 1, 2014, which will make mortgages more expensive for some borrowers and could put loans out of reach for others.
—By CNBC’s Diana Olick. Follow her on Twitter @Diana_Olick.
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Article source: http://www.cnbc.com/id/101137109