CHICAGO, IL - The U.S. housing market looks more positive, with April's housing starts near the highest levels in over three years and showing signs of growth, according to BMO Economics.
"After bottoming in 2009, the U.S. housing sector has had little to no substantial growth; however, today's housing starts now show an increase for the first time in three months and, coupled with other indications of improved conditions, are suggesting a turn for the better," said Jennifer Lee, Senior Economist, BMO Capital Markets.
The latest figures revealed:
Numbers have hit a two-month high of 717,000 units annualized in April (up 2.6 per cent from March).
The Midwest and the Southern states led the gains, significantly beating projected estimates.
Housing starts for both singles-family homes and multi-units showed increases
Randy Raup, SVP, Head of Retail Lending, BMO Harris Bank, noted that the spring season is traditionally the busiest buying period, and many U.S. consumers may be weighing their options when it comes to the purchase of a new home.
"With the housing market showing significant signs of life, optimism is likely spreading among Americans in the market for a new home," said Raup. "Choosing the right mortgage is the first step for all potential homebuyers, and ensuring that the financing suits your lifestyle, current financial situation and risk tolerance is essential."
For those looking to be mortgage free sooner, choosing a mortgage with a 20 year term instead of a 30 year term can save thousands in interest costs over the life of a mortgage. A 20 year term ensures that homeowners can build equity quicker and pay off their debt faster.
Furthermore, Raup noted, "BMO Harris Bank offers an array of product options, designed to meet the needs of each customer's personal financial goals."
Based in Chicago, BMO Harris Bank N.A. provides a broad range of personal banking products and solutions through over 650 branches and approximately 1,350 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Nevada, Arizona and Florida. BMO Harris Bank's commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. Deposit and loan products and services provided by BMO Harris Bank N.A. Member FDIC. BMO Harris Bank(SM) is a trade name used by BMO Harris Bank N.A. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with 1,600 branches, and a retail deposit base of approximately $180 billion.