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Home sales fall in November following presidential election

Since the election of President-elect Trump, pending home sales have fallen by 2.5 percent across the United States. The number of pending home sales fell to the lowest level in close to a year in November after the election, according to the National Association of Realtors.

What could account for this sudden drop? Interest rates have risen, for one thing. They have gone up in response to fears that tax cuts and spending could increase inflation across the board. Before the Nov. 8 election, 30-year mortgages had an approximate mortgage rate of 3.59 percent, whereas they are at around 4.36 percent today.

Home demand has dropped significantly in the West, South and Midwest. In the Northeast, there was actually an increase in pending sales. Not is all lost, because it's expected that 2017 will bring more new hires into construction, opening up the market to more people by creating more homes.

Even though the end of 2016 has seen a significant drop in purchases, it's still set to be the year with the most home sales since 2006. If you are one of the people who will be taking out a mortgage and making payments on a home, now is the time to make sure you make good decisions for your financial health in the future.

Your attorney can review contracts between other parties and yourself before you sign and even help you negotiate to get the best deal on your mortgage or purchase price. With the right help, you can make sure everything you do now is legal and a good decision for your situation.

Source: Market Watch, "Pending home sales fall 2.5% in November as Trump win raises mortgage costs," Jeffry Bartash, Dec. 28, 2016

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