New Home Sales Increase in May

According to HUD and the Census Bureau, the month of May saw an increase in the sales of newly built homes. The sales rose by 7.6% which amounts to a seasonally adjusted annual rate of 369.000 homes. While there was an increase overall throughout the country, these sales were very regional. The Northeast had new home sales increase by 36.7% while the Midwest actually declined by 10.6%. This all indicates that more potential home buyers are being drawn to the housing market because of the current low mortgage rates. The steadying and slowly recovering economy is lending more confidence to home builders and home buyers alike. Despite the increase in new home sales, however, the inventory of new homes for sale remains at a low 145,000 units in May. Compared to March and April, though the month of May proved to have solid growth which will eventually lead to an increased need for the construction of new homes.

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Obama Adminstration's May Housing Scorecard

The May Housing Scorecard has been released, courtesy of HUD, the Department of the Treasury and the Obama Administration. It is a comprehensive report on the status of the nation's housing market. All indicators point to signs of stability. There's been an overall increase in the sale of existing homes across the nation. The inventory of newly constructed homes has also increased. The only slight hindrance right now comes in the form of delinquencies and underwater mortgages. However, the economy is continuing to recover. More than 180,000 borrowers have taken advantage of the Home Affordable Refinance Program to secure mortgage relief. This has helped foreclosure starts to decline.

The Obama Administration has many programs in place to aid homeowners with the woes of the housing market. So far, these programs have established some critical standards and accountability for mortgage servicers. These have forced the industry to provide struggling homeowners with more effective assistance than ever before. Millions of American homeowners have received relief from these foreclosure programs, and the Administration hopes to continue providing it. It is very important that the nation's housing market crisis can recover.

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