Economist sam khater said purchase demand continues to improve heading into the late fall with purchase mortgage applications up 9% from a year ago.
The improved demand reflects the healthy underlying consumer economic fundamentals such as low unemployment rate, solid wage growth, and low mortgage rates.
As you know the federal reserve announced in september that they would cut interest rates by a quarter point.
This is the second consecutive rate cut after more than a decade of holding rates steady or raising them.
The lower cost of mortgages is fueling sales of existing homes according to the national association of realtor's latest stats.
Existing sales in august gained 1.3% from july and were 2.6% higher than a year earlier.
In the south, existing home sales were up 3.6% from a year ago.
As expected, buyers are finding it hard to resist the current rates.
The desire to take advantage of these promising conditions is leading more buyers to the market.
Slower house price gains and falling mortgage rates have significantly improved housing affordability while consumer incomes have accelerated.
This combination is putting a home purchase within reach for more and more home buyers.
The housing market will continue to be supported by household growth, solid job gains, and low delinquency rates.
Housing starts gained over 12% in august compared to the estimated july figure.
Single-family starts increased over 4% and overall starts were up almost 7% year-over-year.
Housing has been on an upswing in recent months as the pace of permits and starts has been rising since spring with the southern region driving the increased starts.
There are some encouraging signs for further growth in housing starts ahead.
Residential construction jobs increased nearly 4% between august of 2018 and august 2019.
This is great news considering homebuyers demand is up as much as it is.
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Surprisingly, more than half of americans admitted they do not know the minimum required down payment needed to purchase a home and were not entirely aware of the various affordable loan programs. 22.
Your credit score, debt-to- income ratio, and a few other factors play a big part in what loan program you qualify for.
Each loan program has its own characteristics to fit different buyer profiles and scenarios and comes with its own