In the News – Positives Pushing Housing Market Near Potential
Housing in the United States is currently experiencing several positives, which have allowed the market to market to come close to its potential, according to data released Monday by First American Financial Corporation. The First American Potential Home Sales Model reported gains in existing-home sales for the third straight month in July, which, combined with low interest rates, job and wage growth, and expanded credit availability has increased consumers’ confidence in the U.S. housing market. Existing-home sales rose in June for the third consecutive month up to an annual rate of 5.57 million, which was an increase of 1.1 percent over-the-month and 3.1 percent over-the-year, bringing existing-home sales back up near early 2000s levels. “Mortgage rates have continued to move lower, absorbing the impact of rising prices and giving consumers increased leverage and buoyed house-buying power,” First American Chief Economist Mark Fleming said. “The average rate for a 30-year, fixed-rate mortgage fell further in July, dropping to 3.44 percent from 3.57 percent in June. Except for a brief four-month period between October 2012 and January 2013, this marks the lowest mortgage rates have been since Freddie Mac began tracking mortgage rates in 1971,” said Fleming.
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