Economic Momentum is Strengthening Home Buyer Demand: The housing market has been steadily growing and now has the potential to grow even more as mortgage rates remain low and have just ticked upward off of their one-year lows and credit is starting to loosen.
But what is ultimately driving demand is the strength in the labor market and related improvements in consumer attitudes. Jobless claims in October remained beneath 300,000: The last month that averaged under 300,000 weekly claims was June 2000 (almost a 40 year low). Continuing claims were last this low at the height of the housing boom.
Consumer confidence and consumer sentiment are both now at seven-year highs.
The first estimate of the third quarter GDP indicated the economy expanded 3.5% as all sectors including government spending contributed to growth. The condition of the U.S. economy is clearly improving.
In every year of this recovery we’ve seen growth fade as we reached the fourth quarter. But this time it may be different as almost all the fundamentals are much healthier. Jonathan Smoke, Realtor. com's chief economist, expects to see solid employment numbers for October this week and more positive momentum to carry the housing market through the winter.