New and existing home sales fell again in September, as higher mortgage interest rates weighed on demand. But those homes that are selling are doing so quickly, and the strong labour market argues against a severe crash in activity. Indeed, measures of home buying confidence ticked-up in September. Slowing sales in the home owner market have supported rental demand, and rental vacancy rates are low by past standards. That is keeping rents rising. Coupled with slowing house price growth, that will help rental yields rise modestly over the next couple of years.
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