The new construction housing market continues to show strength across the country. According to the U.S. Census Bureau, Single-Family Housing Starts rose to 447,000 units on a seasonally-adjusted, annualized basis in November -- a 2 percent increase from October. A "Housing Start" is defined as breaking ground on new home construction. November's figures mark the third straight month of Single-Family Housing Starts gains. The new construction metric is now 15 percent above its all-time low, set in February of this year. None of this should be a surprise to new home buyers in Midlothian. Housing data has been trending better since September with sales volumes rising and home inventories falling. Basic economics tells us that home prices should soon rise. The good news is that low mortgage rates should keep homes affordable. Since mid-November, the average, conventional 30-year fixed rate mortgage has hovered near 4.000% nationwide with an accompanying 0.7 discount points plus closing costs. 1 discount point equals one percent of your loan size. This is down from near 4.500% six months ago, and the drop has made a big impact on home affordability.
- June 2011 : $200,000 mortgage costs $1,013.37 per month
- December 2011 : $200,000 mortgage costs $954.83 per month