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New Economic Outlook Reveals Good News for Housing Market
|According to Freddie Mac's July Economic Outlook, high affordability provided by low mortgage rates has increased the demand for housing and helped boost sales and home prices in many markets nationwide.
Thrusday, August 23rd, 2012
According to Freddie Mac's July Economic Outlook, high affordability provided by low mortgage rates has increased the demand for housing and helped boost sales and home prices in many markets nationwide.
Housing starts for the first five months of the year have jumped 26 percent compared to the first 5 months of 2011, reaching an annual rate of 719,000. Low interest rates have also allowed home sales to increase, as the report notes new home sales were up 17 percent while existing home sales were up 7 percent between January and May this year compared to the same time in 2011.
Freddie Mac reports that many current homeowners are also taking advantage of low mortgage rates, which allow them to refinance for lower monthly payments or a shorter mortgage term. Revisions to the Home Affordable Refinance Program are also credited with an increase in refinances, as 20 percent of all activity was through HARP loans. More than 78,000 refinances were completed in the first five months of this year, surpassing the number of refinances in all of 2011.
Other economic factors, such as job growth, remained flat throughout the beginning of the year for those in the the housing industry and manufacturing. There was an overall net gain of 225,000 payroll jobs in the second quarter of the year, but these increases are significantly lower than in the first quarter, when 677,000 were created.
National real estate trends have a major impact on the real estate market on a daily basis. Keeping up-to-date on the latest news and notes posted by GL Homes can make sure those looking for South Florida homes know exactly how the current market will affect them.