Friday, May 29, 2020

US House Prices Still Rising After 4 Years On The Up

Must read

Struggling Forex Broker Bought Flats With Company Funds

A forex broker whose company was approaching financial meltdown switched £1.05 million from a business account to buy two apartments in Dubai in a...

Stock Markets Slump To Worst Quarter In 37 Years

Stock markets slumped to record losses in the first three mnths of the year due to fears over how coronavirus impacts the world economy...

Operation Airlift Underway For Brits Stranded Abroad

The British government is working with partner airlines to bring thousands of stranded travellers back to the UK. Foreign Secretary Dominic Raab has set aside...

Expat Landlords Get Buy To Let Mortgage Aid

The financial pain of coronavirus uncertainty for buy to let landlords has been eased by the housing minister. Secretary for Housing Robert Jenrick is extending...

US house prices increased by 5.7% in the year to the end of September 2015, according to official figures.

The three-month increase between June and September was 1.3% – and saw home values increase for 17 quarters in a row.

Housing experts were expecting a slowdown in the market.

“Prices did not stand still or fall as many expected,” said economist Andrew Leventis, of the Federal Housing Finance Agency (FHFA), the body producing the statistics.

“The same drivers are in place now that have been pushing the market up for the past four years.

“They are low interest rates, a lack of supply, strong buyer confidence and increasing salaries making homes more affordable.”

What are Fannie Mae and Freddie Mac?

The FHFA calculates the house price index from mortgages backed by the government agencies Fannie Mae and Freddie Mac.

Fannie Mae provides mortgages to home buyers with credit problems

Freddie Mac also provides mortgages but also helps renters with finding a home

The organisations are the largest mortgage funding bodies in the USA and represent a significant number of mortgages taken out for house purchases.

Highest and lowest price growth

The report confirmed house prices went up in every state except West Virginia.

The five states with the highest price growth were:

  • District of Columbia – 15.4%
  • Colorado – 12.7%
  • Nevada – 12.4%
  • Oregon – 10.0%
  • Florida – 10.0%

The five states with the lowest growth were:

  • Hawaii – 2.4%
  • New Jersey – 2.2%
  • Maine – 1.78%
  • Connecticut – 1.10
  • West Virginia – -0.08%

Of the 100 most populated metropolitan areas, the highest increase was in North Port-Sarasota-Bradenton, Florida, where home prices were up 16.1%. The lowest was El Paso, Texas, where prices dropped 3.6%.

Mortgage rates from Fannie Mae and Freddie Mac range from 3.95% for a 30 year fixed rate to 3.01% fixed for the first five years and then reverting to a variable rate.

The FHFA report offers a set of comprehensive national and state house price statistics

The next FHFA house price report is expected in early February.

“The US housing market looks in good health but there is a big difference in housing markets in different states and regions,” said The Economist magazine.

“San Francisco prices are higher than their pre-crash 2005 peak, while those in Las Vegas have increased at the same rate but are 40% below their peak.”

- Advertisement -

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest article

Struggling Forex Broker Bought Flats With Company Funds

A forex broker whose company was approaching financial meltdown switched £1.05 million from a business account to buy two apartments in Dubai in a...

Stock Markets Slump To Worst Quarter In 37 Years

Stock markets slumped to record losses in the first three mnths of the year due to fears over how coronavirus impacts the world economy...

Operation Airlift Underway For Brits Stranded Abroad

The British government is working with partner airlines to bring thousands of stranded travellers back to the UK. Foreign Secretary Dominic Raab has set aside...

Expat Landlords Get Buy To Let Mortgage Aid

The financial pain of coronavirus uncertainty for buy to let landlords has been eased by the housing minister. Secretary for Housing Robert Jenrick is extending...

Financial Package On The Way For Self-Employed

Financial support is coming for freelance and self-employed expats who pay their taxes in the UK, Prime Minister Boris Johnson has promised. In his last...