Privately owned housing starts are on the rise in April.
For the seventh consecutive time, the Fed decided to maintain the Fed Funds Rate at 5.25%. The Fed Funds Rate affects short-term interest rates such as those on adjustable rate mortgages and home equity lines of credit.
As we move into the home buying season for 2007, applications for mortgages increased from the week previous. This is good news following the weak existing home sales report yesterday.
New home sales are looking good due to long-term interest rates remaining favorable. Home buyers have their choice at affordable homes as well as affordable financing.
The U.S. Census Bureau and the Department of Housing and Urban Development jointly reported today that the construction of new privately-owned residences grew for the second straight month, rising 0.8 percent in March.
Mortgage applications were weaker last week as compared to the previous week. The housing market has suffered some setbacks recently, but will the future continue to weaken or will it stabilize?
Home buyers are encouraged to take advantage of low long-term fixed rates as we enter the home buying season for 2007. The excess of unsold homes also makes for a favorable situation for buyers.
The Federal Open Market Committee decided today to hold short-term rates steady for the sixth consecutive time.
Low long-term rates and an improving economic picture are driving more people into the home buying arena. Homeowners are still refinancing their adjustable rate mortgages into fixed-rate programs to avoid rising interest rates and payments.