U.S. Outlook: Housing market is doing just fine
A number of indicators will be released next week that will reveal the latest developments in the U.S. housing market.
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.