U.S. Outlook: Housing market is doing just fine

Scott Anderson
Posted by Scott Anderson
Chief Economist

A number of indicators will be released next week that will reveal the latest developments in the U.S. housing market.

Chart showing mortgage rate trends over last few years, with recent dip.The current low interest-rate environment, healthy labor market, rising real personal incomes, and pent-up demand for housing will power the housing market recovery to new highs in 2016.

For more details about what’s going on, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on May 13.

Key observations:
  • According to the National Association of Realtors, home prices improved in 87% of major U.S. metro areas in Q1.
  • The slowdown in nonfarm payrolls growth for April helped push 30-year fixed mortgage rates down to 3.57%, the lowest since May 2013.
  • Year-over-year growth in U.S. household formation has been positive since February 2014.
  • Demographic tailwinds will also play a crucial role in keeping the housing market pointed in the right direction.

Click here to read my full report.

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  • Anonymous says:

    Well Mr Fluffy we just don’t see eye to eye on Main st here.Over 60% of all jobs created during this recovery were part time and the remainder were added on to supplement the 60% previously created, housing improved? prices are still out of reach for the younger generation and most Americans for that matter. Why don’t you direct your articles on Main St not Wall Street? Inflation? not yet why? because no money circulating. All at the top. You know, check your top desk draw.

    Reply | 4 years ago

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