How much do higher mortgage rates reduce home sales?
There’s a new idea sweeping through the country. It’s called dignity mortgages.
All you have to do is look at a price chart of Lennar Corp (NYSE: LEN) to see the proof that the U.S. housing market is on the mend.
Since January 2012, shares of the Miami, Fl.-based new homebuilder have more than doubled.
In fact, since the industry nearly collapsed six years ago, new-home construction for builders like Lennar is now clearly on an upswing.
According to the March 2013 report from the U.S. Commerce Department, new home construction was on pace for more than one million units for the first time since the gaudy days of June 2008.
Much of this home-buying fervor can be attributed to a few important points:
1. A pent-up demand that has built up over the last six years,
2. Low inventories,
3. And an outrageously low interest rate environment thanks to the Federal Reserve.
The question now is whether or not the “Housing Bubble 2.0” still has legs, making Lennar Corp. a smart new buy with plenty of room to run.
Is Lennar Still a Buy?
Of course, evaluating Lennar on its own merits is a fine exercise in due-diligence.
This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission. Where there’s smoke there’s fire. When it comes to rising home prices, the question is whether the on-fire price increases are a healthy sign of a housing recovery or a smoke screen masking another investor-led real estate bubble.…
This is a syndicated repost courtesy of Money Morning. To view original, click here. Reposted with permission. The housing market has rebounded in a big way, with home prices increasing the most since the housing bubble burst in 2006. Prices aren’t the only indicator pointed toward recovery. Housing barometers including sales, permits and housing starts…