Housing market slowly recovering

Low mortgage rates and tax credit for first-time buyers help to stabilize housing market. Together with low home prices the stimulate buyers' interest which leads to the increase in conventional mortgage applications for home purchases. House builders and contractors get a better chance of finding new customers.

According to the Mortgage Bankers Association there are 7.2 % more of conventional mortgage applications for home purchases. Housing market is being supported and stimulated mostly by low mortgage interest rate, which amounts to 5.4 percent or less for a 30 year fixed-rate loan.

 That will, hopefully, increase the number of new home sales, which went down 0.6% in May. At the same time May number of existing home sales increased by 2.4%.

June new home sales went up 11% from May, rising to an annual rate of 384,000.

Existing home sales in June, rising third month in a row, also indicate housing market stabilization.

Generally it means more jobs for the Nation’s and local house builders. At the same time the government is trying to help present homeowners avoid foreclosures. They have expanded the existing Home Affordability Refinance Program.

Nowadays a homeowner with current loan balance of up to 125% of the home’s market value can get a refinance mortgage.

In general, the situation on the Housing Market seems to be gradually improving.

November 08, 2009