Stable and low Interest Rates Drive New Home Sales Higher

The U.S. Census Bureau and the Department of Housing and Urban Development announced that sales of new, single-family homes in March jumped 2.6 percent compared to February’s numbers.

Bob Walters, chief economist of Quicken Loans, says that a combination of unsold homes, currently at a 7.8-month supply, and favorable financing are driving new home purchases.

“Home buyers are taking advantage of favorable market conditions, with many builders looking to offload their stagnant inventory of unsold homes at very favorable prices,” Walters said. “New home sales have undoubtedly been aided by long-term interest rates that remain in the low six percent range, providing affordable financing to help buyers into their new homes.”

About: Rick Adlam: Rick Adlam has been helping clients with home loan finance since 1985 when he was home consultant with AV Jennings. Rick started Equity Home Loans in 1996 to help homeowners become property investors. Rick currently consults in the development of Mr Mortgage for mortgage brokers and HomeMate for new home buyers. Website: http://www.mrmortgage.com.au