In the recent times the Real Estate industry has been on a boom in all its five sectors, i.e. Residential, Commercial, Industrial, Retail and Investment. Though there were many reports and rumors of crashing of mortgage and real estate market, its growth was rather steady in the first half and will grow further during the second half of the year 2007. This is apparent through economic indicators like steady rates, falling dollar, changing demographic tends, growing stock market and few other things.
The number of immigrants shifting to U.S.A is rising at a quick pace. It is estimated that by 2010, the number of immigrants will raise around 12 million. The demand for home ownership among this section will build up for almost 30% of the U.S market share by 2010. The US real estate industry is going nowhere, but to the top.
The mortgage market is on the rise as well. According to the Mortgage Originations Survey, fixed-rate loans made up 46.2% of dollar volume for first mortgage in the second half of the year. In the first half, fixed-rate loans made up 43.3% of those loan dollars. In terms of number of loans that originated during the time period, 60.5% were fixed-rate in the second half of the year, up from 54% in the first.
The total mortgage origination volume increased in the second half of the year up 11% in dollar amount compared with the first half and up 19.4% based on loan count, according to the group. The Mortgage Bankers Association said that the increase in originations was due to a rise in home-purchase volume and an increase in refinance volume.
With two of the major industries on boom, the stock market is also on a high. Though the financial markets have been unstable in recent weeks, credit situation has become tighter for some households and businesses, and the housing correction is ongoing, the economy seems likely to continue to get bigger at a moderate pace over coming time, supported by solid growth in employment and incomes and a healthy global economy.
Given the importance of well-functioning financial markets, surprisingly little attention has been paid to Mexico's recent progress in laying the foundation for a world-class financial system. A series of quiet reforms-many enacted in just the past few years-points to a financial big bang in the making. This rapidly growing market for mortgage-backed securities is a prime example of Mexico's success in financial development. Not long ago, financing for home purchases was scarce, and obtaining it typically required a down payment of 50 percent or more for a relatively costly adjustable-rate loan. Today, a rapidly growing number of people have access to competitively priced, fixed-rate mortgages.
All the above-mentioned facts tell the success story of the role played by the mortgage and real estate industry in economy's progress.