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

Posted By Scott Anderson In Economic Outlook | 1 Comment

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. [1]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. [2]


Article printed from Bank of the West: https://blog.bankofthewest.com

URL to article: https://blog.bankofthewest.com/2016/05/13/u-s-outlook-housing-market-just-fine/

URLs in this post:

[1] Image: http://blog.bankofthewest.com/wp-content/uploads/2016/05/chart_mortgagerates_051316.jpg

[2] Click here to read my full report.: http://blog.bankofthewest.com/wp-content/uploads/2016/05/BankoftheWest_USOutlook_05_13_16.pdf

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