Apr 23, 2010

Good news for mortgage industry? ...New home sales jump from record low

According to the Associated press, sales of new homes surged 27% last month, bouncing off the previous month's record low and blowing past expectations as government incentives and better weather boosted sales.
The Commerce Department said Friday that new home sales rose in March to a seasonally adjusted annual sales pace of 411,000. It was the strongest month since last July and the biggest monthly increase in 47 years - this seems to be a very positive sign for the real estate finance industry as well.

Median prices of these homes were also up to $214k. For more information please check out the Yahoo!-AP website

The jump is probably the result of people trying to capitalize on the home buyers tax credit which has been used by about 1.8 million households and has cost the IRS $12.6 billion. This hopefully, is a small price to pay for the stimulation of the economy and creation of new jobs which will in turn get the engines of growth revving smoothly ... in short order.
PrivoCorp is looking to process more of these mortgages - and help these home buyers close on their homes faster.

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