Lower mortgage rates stimulate lethargic U.S. housing market

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U.S. new home sales accelerated in August via ReutersTV

WASHINGTON - Sales of new U.S. single-family homes rebounded more than expected in August, the latest sign that the sluggish housing market was starting to get a lift from lower mortgage rates.

“This positive data caps off a month of redemption for the housing market,” said John Pataky, executive vice president at TIAA Bank in Jacksonville, Florida. “If American consumers remain in good spirits, there is no reason this positive momentum can’t continue, so long as prices remain in check and housing supply does not get critically low.”

New home sales are drawn from permits and tend to be volatile on a month-to-month basis. Sales vaulted 18.0% from a year ago. New homes sales are benefiting from a shortage of previously owned homes. The median new house price rose 2.2% to $328,400 in August from a year ago. While other data from the Mortgage Bankers Association on Wednesday showed applications for loans to purchase a home fell last week, they were up strongly from a year ago.

The Atlanta Fed is forecasting gross domestic product rising at a 1.9% annualized rate in the third quarter. The economy grew at a 2.0% pace in the second quarter, slowing from the January-March quarter’s brisk 3.1% rate.

 

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TV oh my, no recession? is it possible that the USA is in prosperity? will impeachment help the DEMS?

TV Lower interest rates? Our first mortgage rate (FHA) was 15 3/4% in 1982! Lift that!

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