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US sees housing market surge

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
25/03/2015

Sales of homes in the Unites States grew sharply in February with mortgage rates expected to fall even further.

The US government’s Commerce Department said sales of new homes grew 7.8% in February, rising at the fastest rate for seven years.

Around 7% of all home sales in America are on new build properties.

This growth saw the annual rate of sales rise to 539,000, the highest number recorded since February 2008.

The figure was achieved despite cold weather hitting much of the country during February.

Analysis of the mortgage market by Zillow showed mortgage rate continued to fall in the country. Unlike the UK, mortgages in the USA are typically taken on a single 30-year term.

This rate fell to 3.56% according to the analysis, down from 3.65% recorded the month before.

It said these figures were unlikely to rise significantly until the country’s central bank, the Federal Reserve System, indicated it was planning to raise rates.

“Rates fell sharply last week after the Fed statement suggested that rates will remain lower for longer than expected,” said Erin Lantz, vice president of mortgages at Zillow.

“We expect mixed domestic data to drive some small market movements this week, but mortgage rates should remain unchanged.”


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