Housing Market Leads Moderate Economic Growth across America

by San Antonio Attorney

The economic growth in the United States remained moderate in the midst of gains in housing, manufacturing and autos that balanced out weakness in industries related to defense in certain regions, according to the Federal Reserve’s report.

U.S. mortgage rates continue to drop, keeping costs of borrowing near record lows and somehow aided the recovery of housing market. The rates have declined for three straight weeks.

For a 30-year fixed mortgage, the average rate today is 3.41% from 3.43% last week, according to McLean, Virginia-based Freddie. A 15- year fixed mortgage is 2.64% from 2.65% last week.

The housing industry is on the spotlight of the nation’s economy, which has experienced small to average growth, according to the Federal Reserve. People are encouraged to make purchases and refinancing by the almost all-time low interest rates, as competition for a limited supply of houses for sale boosts prices.

The Mortgage Bankers Association’s list of purchase applications rose 3.9% this week from April 12 to its optimum level in the last three years. The refinancing increased 5.2 percent, the MBA said.

According to Freddie Mac’s report, the lowest average 30-year mortgage rate was 3.31% in November. The 15-year variety dropped to 2.63%, also a record low.

The Federal Reserve said that most regions have notable commercial and residential real estate improvement as housing prices increased in many places and applications for home loans was either slightly increasing or remained steady. There was also a modest growth of consumer spending while in some regions sales were curbed by rising gasoline costs, increased payroll taxes and cold weather. The report also said that conditions of employment stayed the same or improved fairly.

 

If you are planning to buy, rent or sell a home or apartment, it is important to consult a San Antonio Real Estate Attorney as you will be making a decision or signing a document that potentially has legal consequences.

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