Freddie Mac vice-president and chief economist Frank Nothaft claims that the US housing market is undergoing a significant turnaround, making this the perfect time to invest in US property.
Amid fears of a second burst of foreclosures, the US property market has defied predictions. The lowest amount of new foreclosures was reported at the end of 2012 in the last six years. Figures have revealed that new foreclosures have dropped by 28% since last year; in fact, America currently has one of the most stable and promising markets worldwide.
One of the main contributing factors to this turnaround is America's commitment to low interest rates. Since one of the lowest months on record in November, fixed mortgages remain low. The 30-year fixed mortgage rate has risen from 3.31% to 3.4% and the 15-year fixed mortgage rate has risen from 2.64% to 2.66%.
With mortgage rates down and house prices on the rise, investors are recognizing the potential in purchasing American property now ahead of the rate increase expected in the second half of 2013, although the increase will reportedly still fall short of 4%.
As a family's wealth is largely attached to the value of their home, this value increase means that the property market is already contributing to economic recovery and subsequently benefiting GDP. The buying boom has also seen the growth of related industries, such as housing construction, creating a wave of employment that will increase spending power and further contribute to assisting in the first steps on America's road to financial stability.
Although the economy remains unpredictable, evidence is rife to support expert opinions that the outlook for the property market is hopeful and that those considering investing in property could potentially benefit from purchasing in the next six months.
