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Stronger economy good for the housing market

Posted on Friday, December 6, 2013 at 10:31:51 AM

Better economic conditions are good news for current homeowners and those seeking residential financing. More stable conditions typically mean that personal wealth is on the rise, with more people willing and able to spend their hard-earned cash.

Recent reports from both the U.S. Department of Labor and the U.S. Department of Commerce highlight the positive trend currently present in the nation's economy. 

According to the U.S. Bureau of Labor Statistics, the unemployment rate decreased in November, down to 7.0 percent from 7.3 percent the month prior. Jobs have increased in the transportation and warehousing, health care and manufacturing sectors.

In addition, the U.S. Bureau of Economic Analysis reported the real gross domestic product ticked up at an annual rate of 3.6 percent in the third quarter of 2013. In the previous quarter, GDP rose only 2.5 percent.

"This is generally positive news for housing demand," Frank Nothaft, vice president and chief economist for Freddie Mac, told HousingWire. "As more people go back to work, it means more people have income and the financial resources that they need to create households and buy homes."

Therefore, those interested in affordable residential financing may start their searches with a stronger stream of income given the current state of the U.S. economy.