Low Mortgage Rates Pump Buyer, Builder Confidence

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via: TheMortgageReports.com by Karen Lawson

Single Family Construction Permits Up

The U.S. Department of Commerce reports that housing starts rose in April, with work starting on more single family homes as compared to March. Builders also requested more permits for building single family homes.

During April, builders broke ground at a seasonally adjusted annual pace of 717,000 homes. This represents a 2.6% increase over March 2012, but is lower than January's seasonally adjusted annual pace of 720,000 homes. 

Although residential building permits fell to a seasonally adjusted pace of 715,000, the decline is attributed to a 23% decrease in the volatile apartment construction sector. Permits issued for new single family homes rose by approximately 2%, which suggests improving builder confidence as low mortgage rates prevail.

Improving Builder, Buyer Confidence

Home builders are gaining confidence as more consumers express interest in buying homes.

The National Association of Home Builders/Wells Fargo builder sentiment index reported its highest levels of builder confidence in 5 years in May. Increasing sales and foot traffic are positive signs of consumer interest in purchasing new homes.

Improving employment rates and record low mortgage rates are contributing to builder and home buyer confidence. New construction provides benefits for home buyers and communities by offering more housing choices for home buyers, providing jobs for contractors and construction workers and increasing revenue for communities. 

Low Mortgage Rates Extend Buying Power

Do you want to buy a home, but are uncertain about how much you can afford to spend, or if you can afford to buy? Low mortgage rates provide home buyers with lower monthly payments and the ability to pay off their mortgage loans faster. There are mortgage loan options suitable for many financial situations.

Requesting a current mortgage rate quote is your first step toward determining how much you can borrow for buying a new home or refinancing your current home loan.