It was a busy week in real estate news with several reports being issued, and actions by the Federal Reserve to help stabilize the economy. With affordability at all-time highs due to record-low mortgage rates and attractive home prices, this is encouraging news for homebuyers and sellers.
First, the Commerce Department reported that permits for new construction increased 3.2 percent in August, offering a glimmer of light for the new-home market. A rising number of permits can be a forward-looking indicator of housing starts in coming months, and later in sales of new homes.
In addition, the National Association of Realtors said that existing-home sales increased in all regions in August, even despite regional disruptions created by Hurricane Irene. Overall, sales of existing homes increased 7.7 percent from July and were 18.6 percent higher than in August 2010.
This week, the Federal Reserve also announced Operation Twist, a program intended to spur lending, induce businesses to expand and tempt consumers into spending more. According to the Fed, the intended result is downward pressure on longer-term interest rates and broader financial conditions that are more accommodative. Economics are unpredictable, and while mortgage rates reacted to this news by moving lower, things can – and have – changed quickly.
For consumers looking to make a purchase or refinance, the opportunity to capitalize on historically low interest rates is right now.
Contact me for more information when planning your move. Do your research, I’m happy to help.
