US home sales near two-year peak in latest vindication of lower mortgage rates



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US home sales near two-year peak in latest vindication of lower mortgage rates

On Wednesday, the 22nd of January 2020, a report from the US National Association of Realtors had revealed an upbeat depiction of the US housing market, which appeared to be gathering pace over the recent months following three Fed rate-cuts last year alongside a multi-year low mortgage rate.

On top of that, latest data from the US National Association of Realtors comes over the heels of a last week’s US housing starts figure that reached a nearly 12-1/2 year peak, pointing towards a latest indication that the low mortgage rates in the United States were finally paying off and assisting the housing markets to regain momentum following a muddled 2018, nonetheless, several analysts were quoted saying following reveal of Wednesday’s (January 22nd) US Housing data suggesting a strong demand that a record low US inventory could have been a key hurdle to sustain the gains in US housing market.

Besides, according to Wednesday’s (January 22nd) US housing market data, existing homes sales surged by 3.6 per cent on an annualized basis last month to a figure of 5.54 million units, a level never witnessed since February 2018.

Meanwhile, expressing cautious optimism over a slowing US economy amid an underperforming manufacturing activity, chief economist at Naroff Economic Advisors in Holland, Pennsylvania, Joel Naroff said followed by the reveal of Wednesday’s (January 22nd) US housing market data, “The previous weak link, housing, is coming back, but the current laggard, manufacturing, is slowing further. ”