New US Housing Boom Develops
A new housing boom is forming in the U.S., despite a massive back-log of properties still lingering in the shadow inventory, according to a new report by Money Journal.
A new U.S. housing boom is developing and itís unlike any other sort of boom America has experienced, according to a new report on Money Journal.†
A combination of factors, including the Federal Housing Finance Agencyís plan to sell-off foreclosed homes to investors in bulk and the Fedís low interest rate policy are driving the recovery.
Most analysts agree the move to drum-up home sales is artificially manufactured by government policy makers. It could have dire consequences for the housing market after near record low mortgage rates are removed by the Federal Reserve tinkering with the rates it offers banks. However, higher mortgage rates wonít come until the unemployment rate reaches 6.5%, according to Fed Chairman Ben Bernanke. That is expected to materialize some time in 2014.
Existing home sales have been above year-over-year levels for 20 straight months in February, contributing to the new housing boom. Median home prices have also risen 12 consecutive months.
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