The nation’s housing sector continues to hum along quietly like a well-oiled machine. The last full week of April saw some major figures released involving sales of existing and new homes.
Important Housing News Homebuyers in their local markets had been snatching up property at a steady pace for three straight months through March–and the latest Existing Home Sales figures showed only a slight dip by 0.6 percent to 4.92 million units sold annually, from an adjusted 5 million units sold in March, its highest level since late 2009. Looks like the country could be on course to echoing those robust housing numbers from before the worst of the credit crisis.
The late April figures also showed that demand for new properties has not waned–New Home Sales climbed 1.5 percent within expectations to 416,000. On top of that, inflation remains tame and analysts say housing could provide a boost strong enough to improve the labor market. The Fed (who set the U.S. monetary policy by monitoring national employment, prices and interest rates) are certainly hoping for that!
Housing Starts also spiked by 7 percent in March to come in at the highest rate since June 2008, up a whopping 47 percent since the same period last year.
Important News from Abroad Across the Atlantic, the Eurozone debates wage on, with Cyprus again making waves. As the island’s woes continue, reports that the embattled country could potentially sell gold to meet creditor demands recently sent metals plunging with a severity not seen in years. Nearby, officials in Italy, upon hearing of a possible new joint government led by center-right Silvio Berlusconi and center-left Enrico Letta sent Italian markets soaring.
The Bottom Line U.S. markets, after experiencing record bullish highs thus far, recoiled slightly after the horrific Boston terror attacks. As the second quarter moves forward, market volatility could certainly keep investors moving towards safer avenues like Bonds. This includes Mortgage Bonds, to which home loan rates are tied, meaning investment in this continued safe haven trade could be a continued good sign for home loan rates.
The bottom line is that home loan rates remain near historic lows, meaning now is a great time to consider a home purchase or refinance.
This article was taken from my May 2013 issue of YOU Magazine. Click here to view the full newsletter. If you have any questions about your personal situation, please contact me.