The sale for new homes drops in U.S. and recorded low mortgage rates underpinning demand

    Covid-19 impacted business a lot. Not even a single sector is there which have not faced the crisis.

    One can take the example of unexpectedly falling in the sale U.S. single homes in September after 4 months straight increment.

    The housing market was a supporting by Low mortgage rates somewhere because the demand for more space in the covid-19 situation was increasing.

    But there was a decrement in sales reported by the commerce department on Monday.

    They have followed the data by showing single family home building and come up with a permit racing to levels last seen in 2007 in September.

    In October among all the home builders confidence at the top because of the increment of sales of previously owned homes jump to the highest in more than 14 years in September but right now everyone is in shock.

    Daniel Silver an economist at the JPMorgan in New York mentioned that certain ups and downs are there in the way and they need to look forward to it.

    They always come up for strengthening the housing market as a low mortgage rates boost up the activity and earlier pent-up demand for housing is released.

    When it comes to look at the sale of new homes and it fell to almost 3.5% to a seasonally adjusted annual rate of 959000 units last month.

    The sale for August pace was revised down to 994000 units. But as compared to previously reported 1.011 million units the data is quite somewhere different.

    Not only this but economist forecast about the new home sales and account for almost 12.8% of housing market sales.

    It was rising at the rate of 2.8 % to a rate of 1.025 million units.

    Also, When it comes to look at the surge in the new home sales than a year on year it is around 32.1 % and these are counted at a signing of a contract for sought after signing of the contract these will be going to come under the new home sales and make them the leading housing market indicator as well.

    But in September month the decline could be unbearable. However it is lagging a slowdown in housing market Momentum heading them into the fourth quarter.

    Not only have this but the application for loans that are specifically for purchasing a home been dropped for four straight weeks.

    The confidence of homebuilders is at historic high and shortage of land, lumber and other building materials also lengthening the construction.

    Also, when it comes to notice about the new home sales figure it indicates that the housing market might we finally losing some steam.

    It has been mentioned by John Pataky. He is the executive vice president at TIAA bank in Jacksonville, Florida.

    Not only this but, stocks on Wall Street word trading lower and it has been reported to be a verse today in more than seven weeks.

    It has dragged down by rising in new coronavirus cases. There is no doubt in the fact that everyone is suffering a lot to due to the pandemic.

    Bright Side:

    There is no doubt in the fact that there are certain things which are quite beneficial for all the individuals out there.

    It has affected the economy to an extent but it boosted the housing market as well.

    The major reason for boosting it up is because Americans flee from City Centre to suburbs and low density areas so that they can get more space for home office and schooling.

    Considering unemployment which left 23.2 million people on jobless benefits has affected low-wage workers as well.

    The sales for home has been concentrated in the single family segment only and in the higher prices ranges as well there are things going on.

    There is no denying the fact that in the market first time and second time home buyers are quite active and bidding war is going on in some parts of the country.

    In last month there was a decline in new home sales did not change the expectation about the housing market that are contributed to a sharp Rebound in economic activity in the third quarter.

    Also there was a growth estimated from July to September quarter are high as 35.3 % analyses rate which would recoup roughly two-thirds of the output which has been lost because of the coronavirus thing.

    Also the economic contractor at the rate of 31.4% in the second quarter and there was a depressed decline since the government is starting keeping the records in 1947.

    They have published a snapshot of third quarter GDP on Thursday as well.

    If individuals want they can go through it and get an idea of what exactly is going on and how things got affected during this coronavirus thing.

    After going through it they will be able to get an idea about it and move ahead and search for more as well.

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