New Home Starts

Real Estate Agent with Long & Foster, Realtors

Are you ready for some good news?  Turn off the television and read this. 

New building permits were down 3% to an annual rate of 1.048 million units, which was pretty close to expectations.  The home building industry of course is in the process of paring down inventories to NORMAL levels...the operative word being NORMAL.  This month's report showed signs that the housing market is heading towards a more stable condition. 

Incidentally, have you noticed how the media have stopped moaning about all the adjustable rate mortgages that are going to reset to scary high payments?  Maybe they realized that the Fed's five rate cuts in the last five months mean those rates are resetting to a falling prime.  Maybe the media did their homework and found out ARMs represent a minority of all mortgages, just a little over 20%.

Now didn't we just make your day?

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