The housing market received some good news last week when U.S. mortgage applications rose 16%, the highest since May. Interest rates for a 30-year fixed-rate loan dropped to 4.89% from last week’s 4.94%. This increase in new applications to purchase a home or refinance a loan comes from lower home prices, falling mortgage rates, and tax credits to first-time buyers.
Adding to the positive news, the National Association of Realtors reported that pending home sales jumped 6.4% in August, leading to a seven-month consecutive gain.
This recent news suggests that the housing market is returning from its worst slump since the Great Depression. D.R. Horton Inc., the largest homebuilder in the U.S., is optimistic. It is hoping to boost construction plans to prepare for a housing revival.
To learn more about the housing market’s outlook, read Shobhana Chandra’s article.
