After months of stagnation and decline, the housing market appears to be turning around. According to the Commerce Department, housing starts climbed approximately 9 percent in October after falling almost 7 percent from their January peak. This follows the positive news that new home sales rose 5.4 percent in August and September.
Among the leading causes of the upswing in the overall health of the housing market is borrowing costs becoming more affordable. Mortgage rates have fallen nearly a full percentage point since the beginning of the year. While home prices remain inflated, favorable rates are helping buyers lock in a monthly mortgage payment that doesn’t break the budget. Adding to this good fortune is new data that shows that the rate at which home prices are rising has slowed from last year.
This latest turn of event is a confluence of positive news that should help bolster the housing market in the new year.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.