The housing market is finally making a comeback.
After a long crisis that got worse with the recession, the market looks to be growing to the point that it’s helping out the nation’s economy.
For one, people are starting to venture out in search for homes again. Since the economy is picking up again, there has been an increase in the demand for houses. This trend is called household formation, and it occurs when home buyers become confident in their jobs and the housing market enough seek out a home. When times are bad, there’s a tendency for people to stop this search and instead find ways to lessen expenses.
As proof that the housing market is finally up on its feet, the values of homes are beginning to rise again.Rising values means that more people will be trying to buy homes while they’re still priced low. What this trend does is fuel the long lacking demand in the market.
Another valuable sign is the drastic drop in foreclosure that happened in 2012; in fact, foreclosure start numbers are the lowest they have been in six years. And the downward trend has strong signs of continuing into 2013.
Are you ready to buy a home this year? You should, because it is anticipated that mortgage rates will stay low for 2013. Mortgage rates have been low for a time, but the economy has only started turning around now. While mortgage rates are still expected to stay low, the economy is on the rise, creating demand in people looking to get homes. The low rates will continue into 2013 because of the Federal Reserve’s active role in quantitative easing, which ensures that the Fed will go on buying up mortgages.
While it will take time, there are indeed signs that the job market is getting better. Since markets don’t exist entirely on their own, the growth in the housing market can be in part attributed to better conditions in the job market. According to the Bureau of Labor Statistics, more and more companies are adding jobs, creating an environment conducive to modest growth in the job market. With the increase of jobs available, more people are finding the incentive to purchase houses.
If you are thinking of buying a home or have decided to buy a home but needs assistance with financing, you will be glad to know that a company like PrimeLending may be able to help you anywhere you are in the country. We offer Fixed Rate Mortgage Loans and FHA Loans, among many others.