As per the latest mortgage market, the mortgage rates are getting higher and there is a positive effect on the housing market. The mortgage rates are 4.81% for 30-year fixed rates and for 15-year fixed mortgage, the rate is 4.15%. The mortgage rates are predicted to rise to 5% in the coming year, 2011. The house sales have improved and it's forecasted that the economy of the country may also improve in the New Year. Let's look at the prediction and other situation in the housing market in December, 2010 and what is there for 2011. If you want to take out a mortgage now, you can get help of a loan mortgage calculator.

Unemployment and unsold properties - Reasons for lower house sales

As it was forecasted that the house sales will increase due to the improvement in the economy of the country, the house sales for new homes did not go that high. The unemployment rate is still 10% and the house sales are low for this reason. There are a lot of unsold existing properties too. The house sales were the lowest in August with only 274, 000 houses sold which is record low since 1963. The hose sales must be low but the house purchase rose 290,000 as annual rate from the 275,000 pace in October, 2010. The home sales increased for the existing properties and the number rose to 4.68 million. This is good news after such a long time.

As per the experts, the housing rate is improving as compared to previous results. The new home sales may get a bit restrained if a lot of properties remain unsold and the unemployment doesn't get any better. Foreclosures may also rise and the lenders may also tighten the rules of borrowing for home buyers. This will decrease the demand for more houses. The worst is over and the housing market is bouncing from the bottom. But still, it'll take a lot of time to have a very good housing market.

Spending has gained over the time

As per the reports above the housing market id gradually improving but the conditions to improve much more, it'll take a matter of years. The Commerce Department has said that the consumer spending has increased in November for a fifth month in a row. The demand for equipments such as computers and other telecommunications gear has also increased. The claims for the unemployment benefits have also decreased over the time. This means that since the housing market is improving, the economic conditions in USA is also getting better.

Increased existing home sales in USA

Existing home sales make up 90% of the housing market in USA. If they remain unsold, it'll jeopardize the sales for new homes. So, the recent data suggests that the home sales for the existing properties have increased to 4.68 million and it has given way to new home sales. In July, it was only 3.84 million homes that were sold and it was quite low. The home sales are gradually improving and that shows the gradual improvement in the mortgage market in USA. The new home sales predict the high rate of demand but it may remain slow due to the high rate of foreclosure moratoriums and the unemployment. But if the existing homes are sold, it may still contribute to the economic betterment.

Everybody's waiting for the New Year with a lot of anticipation and mixed feelings. Nothing can be said about the housing market, but if the market goes on the way it is now, the economic conditions may take a turn toward improvement.