Posted by: islamicfinancingnews | December 30, 2012

Housing market progress is good news for Islamic mortgages

islam-31 Practicing Muslims who are considering applying for Islamic mortgages to finance a home purchase should be aware the once struggling housing market in the U.S. continues to show further signs of improvement.

The National Association of Realtors (NAR) recently reported the index for seasonally adjusted pending home sales increased 1.7% from October to November this year reaching the best levels since early 2010. The index takes into account signed contracts to buy homes in the coming months including increased sales for previously owned homes, with the number of contracts rising slightly in the Midwest and highest in the Northeast and Western parts of the country.

With lower interest rates and solid employment gains, recovery for the housing market that began earlier in 2012 is expected to see homes sales increase by ten percent this year. This optimism extends to homebuilders with home construction in November 2012 climbing almost 22% higher than the same month one year ago, as well as potential sellers who see a strong demand and limited supply in the housing market pushing prices for existing homes higher.

While further advancements need to be made, understanding the different options Islamic finance offers can help potential homeowners feel more optimistic about entering the housing market.

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