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