Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Fall in mortgage rates leads to better home sales

By Apil Gupta Subscribe to RSS | July 16th 2012 | Views:
loading
 
  



Riding high on the phenomenally low mortgage rates, there has been an increasing demand for new US homes in May. There was an increase up to an annual rate of 346,000, a hike of 0.9 percent from343,000 in April, as per a median forecast of 56 economists in a Bloomberg survey. Last week’s data also showed that builders ha better success with regards to single-family houses last month, which industry confidence rose to its highest level in five years, this June. The slump in borrowing costs, coupled with more affordable properties, is expected to ensure a higher number of borrowers, while the stagnant job market and limited access to credit impede the recovery. Last week, the Federal Reserve had also extended a program that was intended to keep long term interest rates on the lower side, so as to reduce unemployment, prevent a global slowdown and sustain the housing growth.

Builders broke ground on 516,000 single family houses in May, which was an increase of 3.2 percent from April, and the highest this year, owing to the improving demand.The National Association of Home Builders (also known as Wells Fargo Sentiment Index) also increased by 1 point, its highest ever jump since May 2007. The stability of the housing market has also resulted in better share prices for builders. The Standard 7 Poor’s Supercomposite Homebuilder Index has increased by 33 percent in 2012, much higher than the 6.2 percent increase of S&P 500. However, lower mortgage rates have not contributed to economic growth during an entire year since 2005, when it was responsible for a 0.4 percentage point of the 3.1 percent hike in GDP.

Last year, newly constructed houses comprised 6.7 percent of the residential market, significantly lower from the peak of 15 percent during the housing boom. However, nobody’s complaining, since it’s a sign that things are improving.

Apil Gupta - About Author:
Contact me for 30 year fixed mortgage, 15year fixed mortgage rate , house refinancing and refinance home mortgage .

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/mortgage-articles/fall-in-mortgage-rates-leads-to-better-home-sales.htm

Related Mortgage Articles Subscribe to RSS

Most excellent home mortgage calculator plus home buying tips
Published by Andrew Watson on December 30th 2011 | Finance
For a number of people it certainly is very much common to look around for best mortgage calculator....
 
Good mortgage rates are important for a comfortable mortgage period
Published by Jack Smith on June 22nd 2012 | Mortgage
Get mortgage rates that you can easily pay off even in the future because a mortgage affair can last...
 
Exploring best adjustable mortgage rates as per expectations
Published by Jack Smith on July 23rd 2012 | Mortgage
The act and need for searching best adjustable mortgage rates is common in the world, where people s...
 
Low interest rate brings cheaper mortgage deals
Published by Sandra Jeux on January 25th 2012 | Mortgage
Interest rates are at the lowest side for mortgages at current time which is leading people of the c...
 
Appeal for best adjustable mortgage rates
Published by Jack Smith on July 25th 2012 | Mortgage
In the field of getting adjustable interest rates via the options of best adjustable mortgage rates ...
 
How to procure loans at Best adjustable mortgage rates?
Published by Jack Smith on June 24th 2012 | Mortgage
The above points can easily help a borrower to seek loans at best rates while saving his money and m...
 
Lay your hands on the best mortgage rate in the market!
Published by Jack Smith on April 14th 2012 | Mortgage
While it may be a challenge to find the best mortgage rate¸ a good lender company can always make y...
 
Should you go for a 15 or 30 year mortgage?
Published by Apil Gupta on June 24th 2012 | Mortgage
There are many times in life when one wants to possess something due to the sheer need of it, but is...
 
Looking for refinance mortgage loan - How to find the right one
Published by Apil Gupta on June 24th 2012 | Mortgage
In case you are looking to refinance mortgage loan for your home, there are many things that need co...
 
Best mortgage rate California – Use these time-tested tips
Published by Apil Gupta on June 24th 2012 | Mortgage
Finding the best mortgage rate California is more often than not like locating a needle in a haystac...
 
Find the perfect california mortgage broker online
Published by Apil Gupta on June 24th 2012 | Mortgage
The importance of finding a good California mortgage broker online is paramount in today's times, pa...
 
The top 5 most preferred mortgage types
Published by Apil Gupta on June 24th 2012 | Mortgage
When it comes to choosing the mortgage types that are available to a home buyer, the options are apl...
 
Bad credit and mortgage refinance option
Published by Kam Brar on December 16th 2011 | Finance
As people think, it is not easy to get mortgage refinance with bad credit. There are various factors...
 
Fall in mortgage rates leads to better home sales
Published by Apil Gupta on July 16th 2012 | Mortgage
Riding high on the phenomenally low mortgage rates, there has been an increasing demand for new US h...
 
Explore the different options of mortgage rates available
Published by Jack Smith on April 14th 2012 | Mortgage
It is advisable to first thoroughly investigate about the most lucrative mortgage rate in the market...
 
Wells Fargo faces mortgage risk
Published by Apil Gupta on July 16th 2012 | Mortgage
One out of every three home loans in the USA is currently being funded by Wells Fargo and Co., which...
 
Be informed about Colorado mortgage or Denver mortgage and make a wise decision
Published by Serena Woods on February 15th 2012 | Mortgage
Being informed is never bad especially when you need to make an important financial decision....
 
You can still borrow money with bad credit mortgage
Published by Jack Smith on June 24th 2012 | Mortgage
Bad credit mortgage is really helpful for those who have bad history in past, and with the help of t...
 
Get the best out of bad credit mortgage rates
Published by Jack Smith on June 23rd 2012 | Mortgage
Bad credit mortgage are becoming increasingly popular due to the high interest rates and rising debt...
 
Search well in the market and get best mortgage rates
Published by Jack Smith on June 25th 2012 | Mortgage
For getting best mortgage rates from the market, you need to pull up your shocks and search well in ...