Housing Market Still Strong Despite Mortgage Rate Concerns

The Federal Reserve has started to raise mortgage interest rates. The spike has many people wondering if this could be the end of the housing boom. Industry professionals do not believe so.

“Concerns about rising interest rates and construction costs have been offset by unemployment and increasing wages,” said Stuart Miller, executive chairman at Lennar.

There is still a shortage of available houses on the market in addition to years of “underproduction of new homes,” he said. Demand remains strong and affordability is consistent as rates are still relatively low. Lennar reports profits and revenues that topped Wall Street predictions.

While builder stocks were hit hard this year, Lennar’s upswing is an encouraging sign for the group of leading builders who feared increased interest rates would reduce the demand for new houses.

According to the federal government, new homes sales in May were better than anticipated. Strength was noted in the southern area of the US. The S&P Case-Shiller index shows home prices across the country are continuing to rise.

Pooja Sriram, Barclays economist, noted in a recent report, “Given the combination of strong demand and lean inventories, especially for existing homes, we expect home prices to continue appreciating at a modest pace for the remainder of the year.”

[return to top]

In this issue:

VeroFORECAST Predicts 4.4% Increase for U.S. Real Estate Through May 2019

Americans Continue to Shun ARMs a Decade After the Financial Crisis

FHA Commissioner: Big Banks Should Return to FHA Lending

Home Building Sentiment Declines Due to Rising Lumber Prices

Housing Market Still Strong Despite Mortgage Rate Concerns

Mortgage Applications Decline as Refinancing Reaches 20-Year Low

Guess Which Generation is Struggling the Most to Purchase Homes?

U.S. Mortgage Rates Move Higher

The White House Wants to Privatize Fannie Mae and Freddie Mac

6 Home Buying Myths Buyers Must Stop Believing

The information presented and conclusions within are based upon our best judgment and analysis. It is not guaranteed information and does not necessarily reflect all available data. Web addresses are current at time of publication but subject to change. Smarts Publishing does not engage in the solicitation, sale or management of securities or investments, nor does it make any recommendations on securities or investments. This material may not be quoted or reproduced in any form without publisher's permission. All rights reserved. ©2017 Smarts Publishing. Tel. 877-762-7877. smartspublishing.com