A report from the Federal Reserve Bank of Dallas (http://www NULL.dallasfed NULL.org/research/indicators/2011/tei1103 NULL.pdf) says that the Texas real estate market showed notable improvements in January, as home sales increased.
The report says that statewide, existing-home sales rose for the second straight month in January, rising 3 percent compared to December.
Home construction numbers also showed positive movement. According to the report, housing permits jumped 4.3 percent from December to January – the fourth straight month in which permits have increased. Also, housing starts rebounded by jumping 7.7 percent during the month after a 7 percent drop-off in December.
At the same time, home prices, according to data from Federal Housing Finance Agency, fell to close out 2010, sliding 1.6 percent during the fourth quarter of 2010, creating more affordable conditions for those looking at Houston properties.
Prices for Houston homes, however, have moved in the opposite direction. According to the Houston Association of Realtors, the average home price in the local market gained 2.2 percent in January, reaching its highest level ever for that month.
Texas housing market shows improvement
Federal Rate Cut felt Globally
How do you think that the USA will react over the Federal Reserve cutting the rates by 0.5 percent to its all time lowest level of 1.5 percent in over four years. This drop is an attempt to try and improve the lending that keeps the U.S. economy moving forward.
Bank of America, Wells Fargo and other banks cut their prime rate by half a point to 4.5 percent, also the lowest in more than four years, after the Fed announced its decision early Wednesday.
For millions of Americans, the Fed’s cut means borrowing money becomes less expensive. Home equity loans, credit cards and other floating-rate loans all fluctuate depending on what the Fed does.
Following in step with USA, Central banks in England, China, Canada, Sweden and Switzerland and the European Central Bank, South Korea, Hong Kong and Taiwan also cut rates.
Today, the market (Wall Street) closed at its’ lowest since 2003 even though the Fed cut rates on Wednesday. Globally people are hoping for an upward change in the markets on Friday.
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