Housing Market in USA
Report from the U.S. Department of Commerce’s Census Bureau indicates that new-home sales are increasing, with 504,000 sales in August being the highest surge since May 2008. Total existing-home sales are, however, decreasing indicating less non-cash payments. Total existing inventory was about 2.3 million in August, enough supply that meets the demand. Freddie Mac and Fannie Mae provide money to mortgage lenders, and recently reported profits of $1.9 and $3.7 billion respectively. They have paid $218 billion to the government following the $187 billion bailout. According to The National Association of Realtors, there is a decline in the commitment rates for mortgages, and investors have stepped away from the housing market. Thus, there is a decreased availability of loans.