Consumer Confidence on The Rise; Housing Market Outlook Positive

If you’ve been thinking of buying a home in North Atlanta, it’s still a great time to get a good interest rate on your home loan. 

consumer confidence in real estate

Market conditions

The Fed has been purchasing $85 billion per month in Bonds and Treasuries to stimulate the economy, but starting now, those purchases will decrease. The new rates of purchase will be $40 billion in Treasuries and $35 billion in Mortgage Bonds, which directly affect home loan rates. This could indicate a further tapering of Bond and Treasury purchases, dependent on economic factors.

While consumer confidence declined in October and November due to the government shutdown, it rose again to 78.1% in December. Other indicators are also looking up, including the S&P/Case Shiller Home Price Index, which rose by 13.6% year-over-year in October. Pending home sales were also up in November, and the number of new home sales for October reached 474,000, the highest since mid 2008 and a clear sign of continued improvement in the residential real estate market.

How will this affect mortgage rates?

The Fed may further taper its purchase of Mortgage Bonds in 2014, depending on economic reports, yet current home loan rates are in a good place, especially compared to historical levels. What does this mean for you? Well, if you’re considering buying  a home in north Atlanta, now is a great time.

If you are ready to buy a home, you’ll find it easier and hassle free with the help of experienced north Atlanta real estate agents. Contact Barry Wolfert and Lisa Wrenn to take advantage of our extensive industry experience, as well as our intimate knowledge of the Marietta, Roswell, Alpharetta, north Fulton, and East and West Cobb real estate markets.

 

Financial information provided by Kathy Vitali of Shelter Mortgage