Easier Mortgage Rules, Stable Rates
More and more home buyers are returning to the US housing market because they’re noticing favorable market conditions.
Specifically, buyers are feeling more comfortable about navigating the market thanks to interest rate stabilization and easier mortgage rules, according to a recent article by Reuters.
This is fantastic news for the overall health of the housing market. After all, it suggests that the national real estate market is likely to become more stable over time.
Trends That US Home Buyers Should Be Aware Of
According to the recent Reuters article, new home builders D.R. Horton Inc and Toll Brothers Inc. are seeing jumps in home buyer demand.
And they’re not the only ones.
In fact, new home builders everywhere are reporting improved home buyer enthusiasm, which has been a great relief to many of the companies after an underwhelming spring home selling season.
And pre-owned home sales are also reflecting similar home buyer enthusiasm levels.
Here’s what else the national home buyer should know about recent trends on the housing market:
- Interest rates decreased in October to their lowest levels since June 2013
- In fact, these interest rates are still considered to be at historic lows.
- The Dow Jones U.S. home construction index increased about 4 percent this year so far. And this increase came after the index already doubled between January 2012 and January 2014.
- Meanwhile, new proposed rules will allow buyers to purchase homes with down payments as low as 3 percent.
The proposed rules are great news for first-time home buyers, who are a key part of any housing market recovery. In fact, some experts believe that the housing market recovery will speed up as soon as more first-time home buyers enter the market.
And a faster housing market recovery is good news for everyone!
Meanwhile, In Canada…
The real estate market conditions in Canada are looking just as encouraging, with Canadian resale home prices continuing to rise in October.
Prices were up 5.4 percent from a year earlier, which is right on par with September’s year-on-year gain.
What’s more, October marked the 11th month in a row that the index has increased. Still, it should be noted that prices rose in only five out of the 11 metropolitan markets surveyed.
Prices rose 1.2 percent in Vancouver and rose 0.5 percent in Calgary. Toronto saw prices decrease 0.2 percent.
Your Central Source for Housing Market News
Check back here soon for more valuable updates on the current state of the national housing market and how they may impact you as buyers and sellers.
We pride ourselves on offering you relevant and reliable information that will help you make the best real estate decision possible for you and your family!
Janis Peterson, REALTOR®, GRI, ABR, SRES, CSP
Main Line Homes Luxury Real Estate Agent