As the books were closed on 2016, many economic indicators were on the rise. Some signal good news for those in the market to buy a home. Housing Starts Surge For regions struggling with limited housing inventory, Housing Starts may provide some hope. December Housing Starts surged 11.3 percent from November. On another positive note, Existing Home Sales ended 2016 as the best year in a decade. Limited housing inventory continued to push home prices up in 2016. CoreLogic, a provider of consumer, financial and property information, reported that home prices, including distressed sales, rose 7.1 percent from November 2015 to November 2016. Inflation Ticks Up Consumer inflation was up 2.1 percent from December 2015 to December 2016, as reported in the Consumer Price Index. Rising inflation is worrisome for homebuyers because it reduces the value of fixed investments like Mortgage Bonds and hurts the home loan rates tied to them. Home Loan Rates Still Attractive Home loan rates were able to improve slightly in the first part of January. For now, home loan rates remain historically attractive.
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