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Optimism Takes Hold on Housing Market
Although there is no denying that the U.S. residential property sector is still soft compared with the previous three years, a growing number of analysts are beginning to hint that the country's housing slump may be over.
They point to a rebound in home builder stocks and declining mortgage reasons as proof.
Indeed, builder stocks rallied sharply on Nov. 30 following an analyst's upgrade, while Freddie Mac confirms that the average interest on a 30-year fixed mortgage slipped to 6.14 percent this past week.
"The transition from sizzling markets to normal or weak markets has been orderly so far, and recent drops in interest rates lessen the likelihood that precipitous changes will occur," says Patrick Lawler, Chief Economist for the Office of Federal Housing Enterprise Oversight.
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