Matt's Market Insights
A slowing housing market has been a worry ever since 10-year Treasury rates kicked up to near the 3% range. Remember that mortgage rates typically track the 10-year. Today there was pleasant news to be had from the Commerce Department's reading on new home sales. Instead of the expected 3.1% decline, new single-family home sales rose 9.6%. This news appeared to trigger broader stock market gains in the morning, but as has been the case during the last two sessions, equity markets sold off into the close.
On a year-over-year basis, home prices increased 13.4% in December. This is the fastest pace since 2005. That's good news and bad news. Good news because home prices are increasing, bad news because the rate of increase is unsustainable. If home prices continue at this pace, we could be on track for creating another bubble. However, most expect the increase in housing to slow as ... Log in or subscribe to continue reading.
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