New home sales hit highest level in years

Reports are finally in for January 2015, and home sales have remained very strong for another month, and hit levels not seen in over six years. Home prices have also been on the rise, hitting their highest values since 2007, according to the FHFA House Price Index.

Home sales have been so good recently, that in many places home demand is far exceeding supply. Mortgage rates remain very low at under 4 percent, and mortgage lenders have been approving nearly 70 percent of applications according to Ellie Mae.

The U.S. Department of Housing and Urban Development (HUD) reported a new construction home sales rate of 481,000, based on their seasonally-adjusted annualized rate. This rate is almost exactly what it was in December, and is causing around a third of homes to sell in less than 30 days.

Home builders are being careful not to overproduce, however, so demand should continue to be strong throughout 2015. Many lenders are quoting conventional loan rates in the mid 3 percent range, which is great news for potential home buyers. With rates being low compared to even last year, buyers can afford to spend more on their home without being hit with high interest costs.

Certain regions in the U.S. have seen home prices rise faster than others over the last year. The average for the nation was an increase of 5.4 percent from a year ago, but the Pacific and Mountain regions have rose by 8.6 and 6.9 percent, respectively. This includes states like Washington, California, Nevada, Colorado, Hawaii and Arizona.

View current mortgage rates at Best Rate USA, and find which type of home loan suits your needs best. Home prices are only expected to rise as the year goes on, so now is the best time to start looking for a new home.