U.S. Outlook: Is housing still on fragile ground?
Janet Yellen’s recent testimony to Congress raised the possibility that the housing slowdown may be more prolonged than a winter lull.
For more on the latest economic developments to watch, see higlighhts of my weekly economic analysis below, followed by a link to the full U.S. Outlook report, delivered on May 16, 2014.Key observations:
- Home builders’ expectations of future sales and prospective buyer traffic are the strongest since January.
- We are forecasting improvement on both new and existing home sales on the month.
- Initial jobless claims fell below 300K last week, the best reading so far in this expansion. This is one reason for optimism on housing.
- Another reason for optimism: home price appreciation is decelerating at the national level.
- Pent-up housing demand, low interest rates, and a stronger economy should rekindle positive momentum in housing market in coming months.