Doug Finnegan Mortgage Banker, NMLS# 417170 direct: 630.780.1611 fax: 312.491.5397 dfinnegan@thefederalsavingsbank thefederalsavingsbank/dougfinnegan Housing starts increase in March New residential construction typically provides an indication of future inventory levels, as new homes add to the options available to first-time home buyers. According to the report, there was a 2.8 percent increase month over month for housing starts in March. New housing construction was at a rate of 946,000 units, up from Februarys revised estimate of 920,000. In the single-family housing market specifically, there was a 6 percent increase month over month. Marchs rate of 635,000 unit eclipsed Februarys 599,000. In addition to gains for housing starts, building permits, which provide an indication of future construction activity, were up for single-family homes, showing a 0.5 percent increase month over month. While these figures show a positive trend, they fall short of what many economists had expected. Multiple reports said that Marchs housing starts were predicted to reach a rate of at least 970,000. A report from USA Today noted that builders are seeing higher costs, which have led to a slowdown in construction. Economists Stephanie Karol and Patrick Newport at IHS Global Insight told the news source that prices will need to continue growing if builders are to break more ground. Low cost mortgage options available to home buyers Although further price growth is expected throughout the year - especially as tight inventory keeps buyer competition high - consumers who plan on a new home purchase may take comfort in the fact that mortgage rates declined, according to Zillows Mortgage Marketplace. The average interest for mortgages overall dropped to 4.14 percent during the week ending April 16, down from 4.20 percent the previous week. For 30-year fixed-rate mortgages specifically, there was a decline from 4.24 percent to 4.12 percent, a six-week low. Furthermore, 15-year fixed-rate mortgages and 5/1 adjustable-rate mortgages stood at 3.15 percent and 2.80 percent, respectively. Last week, rates dropped to their lowest levels in six weeks as investors shifted out of stocks and into safer assets, like U.S. Treasuries and mortgage-backed securities, said Erin Lantz, Zillow vice president of mortgages. This week, there is a full slate of economic reports scheduled for release, with the potential to nudge rates up. Call today for more information! Doug Finnegan Mortgage Banker, NMLS# 417170 direct: 630.780.1611 fax: 312.491.5397 dfinnegan@thefederalsavingsbank thefederalsavingsbank/dougfinnegan This message is for information purposes only and is not an advertisement to extend customer credit as defined by Section 226.2 Regulation Z. Program rates, terms and conditions are subject to change at any time. 1823 Centre Pointe Circle Naperville, IL 60563 You are receiving this message because you have opted in to receive communications from The Federal Savings Bank. Please click here to unsubscribe. To view this page as HTML click here
Posted on: Sat, 19 Apr 2014 22:30:26 +0000
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