Even with the recent rate hike, interest rate is still very low compared the average 10 to 20 years historical interest rate.
(PRWEB) June 30, 2013
The latest comments from the Federal Reserve chairman, Ben Bernanke has casted doubt in the marketplace that U.S. housing market recovery might come to a premature end. The 30-year fixed mortgage rate jumps to an average of 4.46 percent this week, which is the largest weekly increase in more than 26 years. According to David M. Blitzer, chairman of the Index Committee at S&P Down Jones Indices, "the resulting sharp increase in Treasury yields ignited fears that rising mortgage rates will damage the housing rebound". However, many experts are still voicing their confidence of a sustainable recovery in U.S. housing market.
As one of the leading turnkey real estate suppliers for investors worldwide, the president of Property4Prosperity Inc., Mr. Chayot Ing-aram, also believes that the rebound in home prices across America will continue in the foreseeable future. He cites the "so-called largest weekly increase in interest is nothing to be afraid of, given the fact that the rate has been at an all time low that even a slight increase will result in a proportionately large percentage increase. Also, even with the recent rate hike, interest rate is still very low compared to the average 10 to 20 years historical interest rate."
The most recent Fed Senior Loan Officer Opinion Survey shows that many banks are beginning to ease their credit restrictions and allow for more credit expansion, especially in the area of home loans. According to Mr. Blitzer, this easing of credit is more vital than the interest rate. Given this recent easing of credit by banks, he believes the housing market would continue its path of recovery.