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Monday, March 21, 2011

Cash takes record bite out of dwindling home sales: NAR

I'm really trying to understand this phenomenon.  Is it due to the low interest rates at bank, so investors/savers are deciding to put their money into other investments?  What happens when mortgage rates and interest rates increase?  Will it cause a big decline in housing as housing investments now have to compete with 5% CD's again?
NAR said all-cash sales accounted for one-third of all sales in February, which is the highest level recorded and up from 32% in January and 27% a year earlier. Investor activity in February remained flat with a year earlier at 19% but fell from 23% in January.
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