Rising Mortgages? Not an Issue!

The housing market is making a steady comeback. This naturally means that mortgages will rise with it. According to Fannie Mae, however, this is not a stumbling block on the road to the housing market’s recovery. The reason, they say, is because homes are still very affordable, despite the increase in mortgage rates. Currently, an average mortgage stands at 4.7%, and will likely continue to rise.

It is projected that housing starts will rise by 25% in 2013, with home sales rising 7%, respectively. For the first time in six years, mortgage debts should be on the rise as well. New home sales, homebuilding ventures, and construction employment should return to normal by 2016. This would mark a 10-year transition from the housing downturn to a recovery. Growth in 2012 was at a staggeringly poor 1.7%, with this year projected at a promising 2.1%.

All in all, the rising mortgages do not appear to be hindering the Real Estate market. Buyers are still buying, and the market is continuing to show signs of growth. It’s a good time to be in the Real Estate business!


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