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US housing market showed signs of strength and growth in July

US housing market showed signs of strength and growth in July

The U.S. housing market remained "stalwart" in July despite global economic changes, according to a monthly insight report from Freddie Mac.

Despite some initial apprehension, the U.K.'s decision to exit from the European Union did not have a substantial effect on the U.S. housing market. However, Freddie Mac did note global risks and unease have pushed more investor toward the more secure U.S. Treasuries bonds and away from the stock market. This had the effect of keeping mortgage rates near historic lows in July, and Freddie Mac anticipates this to continue, possibly into 2017.

"The Fed is expected to keep any interest rate increase on hold until the end of the year or early next year."

As the U.S. economy moved into the third quarter of 2016, consumer spending normalized and continued to push the market upward at a moderate pace. However, Freddie Mac noted The Federal Open Market Committee is expected to keep the any interest rate increases on hold until at least the end of the year or even early next year. Continued low mortgage rates are expected to be a boost to both new home buying and refinancing.

Further market insight for July also found despite historically low mortgage rates, many millennials are still reluctant to close on their first home.

"Millennials are taking longer to marry, start families, and buy their first homes," Freddie Mac Chief Economist Sean Becketti said in a statement. "And the 55+ population are working longer, aging in place, or buying an additional home (or two) rather than winding down. Furthermore, they expect to be an active part of our housing economy for quite a while longer."

While millenials may still be slow to close on their first house, Freddie Mac did find the investment is worthwhile, especially in the long term. The organization's July market insight report found today's 65-year-old who bought the "average" house at age 30 has seen the value of that house increase 3.7 times.

At The Federal Savings Bank, we understand the value of owning your home. Contact our mortgage bankers today to learn more about locking in historically low interest rates when purchasing or refinancing your home.