Posted by: islamicfinancingnews | August 24, 2013

Positive news for the housing market and Islamic mortgages

islam-81 There is some good news in the U.S. housing market which can benefit people looking for Islamic mortgages to help buy their first home or next home.

Even though longer-term mortgage rates have climbed from previously recorded record low levels, sales of existing homes in the U.S. rose last month at a pace not seen since 2009, minimizing the fear that higher mortgage rates would negatively affect home purchases. In fact, over the last year, sales of existing homes have risen 17.2 percent according to a report from the National Association of Realtors (NAR). There are indications the housing market north of the border is stabilizing as well with the Canadian Real Estate Association (CREA) reporting an increase in the sale of previously occupied homes between the months of June and July.

Improved hiring numbers and low mortgage rates combined with an increasing number of available homes for sale seems to indicate the U.S. housing market is recovering. New home sales have also risen 38 per cent in the past year. Consumer spending accounts for approximately 70 percent of the country’s economic activity. When home sales and home values rise, so does consumer confidence which encourages more spending and ultimately helps the larger economy.

Consult with your lender when you need advice on choosing the best Sharia compliant Islamic finance product to purchase a home.


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