Positive signs emerge for US housing market
Posted on Tuesday, April 8, 2014 at 9:18:36 AM
Over the last few years, the housing market has had its fair share of ups and downs. While the amount of foreclosed houses have decreased and residential financing rates remain near historic lows, other factors have constricted affordability and prevented some buyers from finding properties.
However, there is more good news recently, according to Fannie Mae. The government-sponsored enterprise's National Housing Survey found that consumers have been positive as of late. This sentiment could lead to an increase in home sales and selling activity.
"The housing recovery continues to proceed in fits and starts," said Doug Duncan, senior vice president and chief economist at Fannie Mae. "Rising mortgage rates and a lack of supply have dampened housing market momentum. However, we see several positive signs going into this year's spring home buying season, compared with last year."
In addition to rising confidence, the Federal Reserve also reported that consumer credit increased in February, up at a seasonally adjusted rate of 6.5 percent. Total credit levels rose by roughly $16.5 billion to $3.1 trillion.
Economists surveyed by Reuters predicted a similar bump, with consumer credit expected to rise by nearly $14 billion during the month.