As 2013 progresses, more signs of the recovery are being revealed by both consumers and economist alike. Positive reports of consumer confidence beginning to see considerable rises, real estate property records showing appreciated values, mortgage rates remaining at affordable levels and inventory levels struggling to keep up with demand all point toward the possible continuation of recent improvement.
Yahoo Homes recently reported that these factors, along with other economic indices have led real estate professionals to project the future strengthening of the mortgage market and overall residential real estate sector.
New home construction on the rise
As an uptick has recently been observed in the confidence of home building professionals, the news source noted the coming months may find increase activity for new home mortgage applications. The National Association of Home Builders reportedly announced its Housing Market Index reached a level of 47 at the end of 2012, which was the most highest level seen since April 2006.
Unemployment rates show positive declines
When the U.S. Bureau of Labor Statistics reported the national unemployment rate was at 7.8 percent in late 2012, the number represented the lowest month seen in American since January 2009. However, that total has since shrunk, as a multitude of industries have added a considerable amount of jobs to the labor market in recent months. With an increasing number of consumers finding employment, many may be making more purchases and considering homeownership, spurring the economy and further supporting the housing market in turn.
Mortgage records hovering at historic lows
Although levels for fixed- and adjustable-rate mortgages have fluctuated during the past several months, they are still located near low, affordable levels that can greatly benefit consumers seeking home loans. Freddie Mac recently reported 30-year fixed-rate products were seen at less than 4 percent for the past 12 consecutive months.
March Housing Scorecard shows high rating
Along with the government-sponsored enterprise reporting low rates, good news was also announced by the U.S. Department of Housing and Urban Development. According to the department's March 2013 Scorecard, home prices saw significant annual gains in the past year, as the purchase of new and existing homes continued to grow. Additionally, more than 1.5 million home owner assistance actions have taken place through the Making Home Affordable Program, which has helped more than 1.1 million homeowners receive a permanent loan modification. Due to this, the average consumer who took advantage of the program is saving about $546 per month on their mortgage.