US retail sales up 2 percent in July

(MENAFN) United States sales speeded to the strongest pace in eight years hitting 2 percent to a seasonally adjusted annual rate of 5.59 million, the fastest since 2007, as citizens boosted their home-buying for a 3rd straight month in July.

As mortgage rates are fairly low and job growth is steady, current homeowners have been encouraged to buy homes, however, the upturn also reflects growing problems with affordability that have made first-time buyers scarce.

Only 28 percent of deals went to first-time buyers in July, an executive of Coldwell Banker had this to say "When first-time homebuyers compete with people who are more qualified borrowers that have additional cash, they tend to lose."

Moreover, the recent sales burst also reflects two critical factors: the economy adding a solid 2.9 million jobs over the past 12 months and the average, 30-year fixed mortgage rate staying around 4 percent.