Mortgages have reached a record-high of $354,500 on average, showing that high-end buyers are having more success at purchasing a home, according to the Mortgage Bankers Association.
Douglas Elliman’s Noble Black said on FOX Business’ “Varney & Co.” that the average size of mortgages consumers were looking to obtain a home is a good sign for the housing market.
“It shows confidence in the market. Overall the economy is still doing well. People still feel positive about buying,” he said on Thursday.
MBA’s data shows seasonally adjusted index of loan applications to purchase a home rose 4.3 percent to 250.8 in the final week of March 8.
Black stated that the monthly mortgage rate is also a sign that the economy continues to gain strength.
“You’re not going to do that unless you’re feeling good about the market,” he said.
Black also discussed New York Democratic Governor Andrew Cuomo’s push for a permanent 2 percent property tax cap, saying, “I think it’s great …. I think taxes were getting out of control in certain markets. New York is not known exactly known for low taxes in general, and I think he’s trying to make it where we’re competitive.”
When asked if the property tax is related to the governor concerns over the SALT cap, Black said, “I think it’s a great response to SALT, I don’t think it’s the cause of SALT. This is actually one thing that he did very well a few years ago, this is a continuation of it.”