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Average 30-year mortgage rate up to 4.33%

Photo credit: JefferyTurner / Foter / CC BY

 

Although still at historically low levels, the mortgage rate rose to 4.33% last week. This is the percentage for the average rate on 30-year loans. From 3.33% to 3.35% is the increase for the average rate on 15-year loans.

Until now, the Federal Reserve was making $85 billion-a-month bond purchases, which kept the rates low. Due to the signs of improving economic conditions, the Fed is now reducing these purchases. This naturally affects the mortgage rates.

Even though the construction industry is a bit chilled after the cold months of December 2013 and January 2014, the prospects for home builders are still positive. Home sales are expected to keep increasing, even if not at the same rate as in 2013.

 

Read the source article at USA TODAY

Car Dealer Sales, Profits On The Rise

 

Kolao dealership
Great prospects ahead of car dealerships
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From 812 to 874 – that’s the average increase in car sales per dealer from 2012 to 2013.

This is certainly good news for auto dealerships, especially after the lowest point in 2009 when sales were at 564 cars per dealer. In the five years since then, the industry has slowly returned to normal operation. If the positive trend continues, and there are good reasons for this with the improving U.S. economy, the average sales can reach 900 cars this year. The expected sales figure for the country is 16 million for 2014.

The number of auto dealerships is also slowly growing. The best results are in California and Texas.

The general prospects for the industry are positive for the next years as well. Some even compare them with the early 2000s.

Read the source article at CBS Detroit