U.S Home Sales Jump to a Two Year High as Mortgage Rates Fall – ValueWalk Premium

U.S Home Sales Jump to a Two Year High as Mortgage Rates Fall

US Home Sales Fall


During May this year, U.S homes sales took a leap- not seen in two years. The increase in May sales, which beat forecasts, followed a bulge in demand after mortgage rates fell. This introduced a glimmer of hope and improved the residential real-estate market’s outlook.

Today, The Department of Commerce reported that purchases had gone up to a 369,000 annual rate. This represented a 7.6% gain in comparison to the preceding month. It was also the highest leap ever since April 2010.

The Federal Reserve seems to advocate for these increases in sales. Last week, the Fed extended a program that was geared towards maintaining low figures on long-term interest rates. The Fed primarily aims at suppressing unemployment, sustaining housing and putting a leash on the global slowdown which in its viewpoint may delay expansion.

Brian Jones, a  U.S economist, shared his insight on the matter. He remarked that the leap was a sign of revived hopes in the housing sector. Jones’s forecast, despite failure to materialize, was incredibly close to the recorded figures. Brian Jones expected a gain of 362,000- a mere 7000 off the recorded figures. Although Jones aired an aura of hope, he remained firm on the state of affairs citing that we had miles to go before returning to ‘business as usual’.

Another person who notes signs of recovery is United Technologies Corp (NYSE: UTX) Chief Financial Officer Gregory Hayes. At a June 14 conference, he said that there would be no remarkable recovery in the U.S residential marketplace but rather a steady recovery, reported Bloomberg. Hayes went on to add that the Residential was coming back although at a really slow pace.


Saved Articles

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

What’s missing today for many investors is real, straightforward advice.

Especially when it comes to Value Investing and Hedge Funds. 💵

That’s what makes ValueWalk Premium different. Some would say we’re “unusual.”

Our subscribers look forward to clear, easy-to-understand information they can act on.

Sign up for  today for only a few dollars a day and get a 3 day no obligation trial with a targeted 20% discount coupon code.

Cancel anytime during trial and you are never charged.

Limited time offer: For first 50 subscribers