Last Week in Review: A Great Housing Backdrop
Many are wondering what lies ahead for housing as we enter 2020.
There are many reasons why the U.S. housing sector should do well for the foreseeable future, but here’s three main reasons for the bright outlook:
- Housing Starts are improving. This is especially true for single-family homes, which have risen for five consecutive months. This trend suggests anticipated buying demand.
- The labor market remains strong. Rates don’t buy homes, jobs do. 50+ year low unemployment at 3.6%, coupled with rising wages makes for a wonderful housing backdrop.
- Low home loan rates for longer than most expect. Rates don’t buy homes, but they definitely help more people participate in buying a home. With inflation running beneath the Fed target of 2.00% for the foreseeable future, there should be no upward pressure on home loan rates.
Bottom line: there is no recession in sight. The backdrop for housing is more of a Goldilocks scenario and makes for a wonderful time to purchase a home.