Some positive news is coming from the housing industry as recent numbers suggest stabilization in a sector that has been struggling. Although there was a 25bps increase in interest rates by the Fed, mortgage rates dropped for the third consecutive week according to Freddie Mac. Reports show commercial mortgage loans may become increasingly more challenging, but residential mortgages will remain readily available.
Contracts to buy existing homes rose in February, the third month with the same effect. Along with that is the increasing confidence of home builders, who continue to build homes. Even with the high prices of materials, the builders continue to grow more confident that their homes will be sold. Existing home sales jumped 14.5% in February, which could be due to the decreasing mortgage rates. Home prices in major cities also fell 0.6%.
The housing sector is one of the biggest parts of the US economy, almost single handily causing the recession in 2008. A strong housing market could show exemplify a stronger-than-expected economy. With the increase in home purchases, it seems people have a more positive outlook on the economy than expected. As long as consumers continue spending, the economy just might be ok.
https://finance.yahoo.com/news/housing-market-data-suggests-sectors-downturn-coming-to-an-end-202631499.html
1 comment:
It seems like the housing market is in a better position than it has been in some time, which could have positive implications for the economy as a whole. If consumers continue to spend and invest in their homes, this could help to drive economic growth and stability. It will be interesting to see how these trends develop over the coming months, but for now, it's good to see some positive news from the housing industry.
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