The Mortgage Situation Seems To Cope Up

July 19, 2009
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Mortgage News

Despite economist projection of an annualized pace of 530,000, market today has increased to 582,000; 52,000 higher than the economist projections. The increase is also better than last June’s figures, with 562,000 pace. However, this month’s figure is still down by 46-percent from last year, despite of these, the increase of last month and this month is a better sign that our housing industry are slowly coping.

In spite of a continued rally in equities market, mortgage is said to be recapturing most of the losses over the previous couple days. Following the report from Bank of America and Citibank where both companies earned this month. Citibank has reportedly profit $4.28-billion due to the sale of Smith Barney. While on the other hand, the Bank of America reported yesterday a net profit of 33 cents per share.

Reports also mentioned that in the residential real estate sector, many are beginning to construct new houses. Data shows that 70-percent to 80-percent of constructing new houses is from the single family sectors. The data suggest that if new homes are being built, it will lead to increased demand for goods such as flooring, appliances, lumber, and other stuffs for constructing. And if this trend continues, employment in the construction industry may pick up.