Filtered by Subscriptions: US Housing Use setting US Housing
House price growth should continue to cool February’s 0.4% m/m rise in house prices is still a bit stronger than the timely leading indicators - like rising months’ supply and longer average time on market - would suggest. However, along with a small …
29th April 2025
You can’t buy what you can’t afford The fall in existing home sales in March serves as a good reminder that more home listings alone are not enough to revive the market. Affordability also has to meaningfully improve which, based on our view that …
24th April 2025
Sharp rise in sales shows market still has momentum Lower mortgage rates drove a sharp rise in new home sales in March, showing that the market still has solid momentum despite inventory creeping up in the resale segment. However, with mortgage rates …
23rd April 2025
Fall in starts not a major concern The sharp fall in housing starts in March is less concerning than it seems at first glance, partly reflecting a normalisation in homebuilding after February’s weather-driven surge, rather than a collapse in the sector. …
17th April 2025
Small rebound in sales shows new home market still in good health After a large partly weather-driven fall in January, last month’s small rebound in new home sales was a little underwhelming but still illustrates that the market for new homes is in decent …
25th March 2025
House price inflation rises to five-month high The solid 0.5% m/m rise in house prices in January and accompanying pick-up in house price inflation to 4.7%, from 4.6%, confirms that the market has stopped cooling for now. While we still expect house price …
Unexpected rise not a sign of strength to come The small rise in existing home sales in February is unlikely to mark the start of a period of strength for buying activity given that purchase mortgage applications, which lead transactions by a month or …
20th March 2025
Housing starts rebound but tariff concerns loom The sharp rebound in housing starts in February and healthy permit issuance shows that the housing market is still holding up well. Nonetheless, with tariff concerns continuing to weigh on homebuilders’ …
18th March 2025
Fall in applications signals a weak Spring sales outlook The sharp fall in home purchase mortgage applications in February confirms that the rebound in mortgage rates late last year is suppressing home purchase demand. Recent declines in Treasury yields …
5th March 2025
Harsh winter weather takes its toll on buyers The large fall in new home sales in January was to be expected given the disruption from the unseasonably severe winter weather. While sales should rebound this month, elevated mortgage rates will limit the …
26th February 2025
House price growth unexpectedly reaccelerates The stronger 0.5% m/m rise in house prices in December suggests sellers still have the upper hand despite more homes coming onto the market and relatively weak buyer demand. This raises the risk that we have …
25th February 2025
Weak start to 2025 a sign of things to come The fall in existing home sales in January reflects weak deal-making at the end of last year due to the surge in mortgage rates. Given that borrowing costs have stayed above 7% since then, we expect this …
21st February 2025
Weather partly to blame for decline in housing starts The decline in housing starts in January is not a major concern, as it comes after a surge in starts in December and appears partly driven by the unseasonably harsh weather. Encouragingly, permit …
19th February 2025
The decision by the US and Russia to “lay the groundwork” to end the war in Ukraine marks a potentially significant turning point after three years of conflict. Negotiations will take time and the macroeconomic implications will depend on the features of …
18th February 2025
This page has been updated with additional analysis since first publication. Jump in applications does little to brighten bleak sales outlook The steep rise in home purchase mortgage applications in January left applications at their highest level since …
5th February 2025
Housing market continues to cool The modest rise in house prices in November adds to the sense that the housing market is experiencing a bit of a slowdown amid weak buyer demand and gradually rising supply. We think this trend has a bit further to run, …
28th January 2025
Newbuild demand remains a bright spot in otherwise frozen market The 3.6% increase in new home sales in December wraps up a solid year for newbuild demand in an otherwise stagnant housing market, with sales up nearly 3% over 2024 as a whole. We expect new …
27th January 2025
Small rise in sales does not mark beginning of the recovery The small rise in existing home sales in December reflects deals that came together in September and October, when mortgage rates hit a nadir of 6.2%, getting across the line. Given the recent …
24th January 2025
Jump in starts consistent with growing optimism among builders The large rebound in housing starts and continued resilience of building permits in December provides some support to our forecast that starts will remain solid in the first half of the year. …
17th January 2025
Weak mortgage demand supports our gloomy home sales forecast The small decline in purchase mortgage applications in December is worse than it looks, as it masks a collapse in demand in the final few weeks of the month, driven by mortgage rates climbing …
8th January 2025
Home sales finally gain some momentum The increase in existing home sales in November, despite rising mortgage rates and weakening mortgage applications the month before, points to stronger demand from cash buyers, possibly driven by investors as election …
19th December 2024
Post-hurricane rebound marred by multifamily weakness The decline in housing starts in November was entirely due to weakness in multifamily construction, which outweighed a post-hurricane rebound in single-family construction. The rise in permits to a …
18th December 2024
Purchasing activity rebounds despite higher borrowing costs The rebound in purchase mortgage applications in November shows that there were some signs of life in the market, despite the return of 7% mortgage rates. But taking a step back, activity remains …
4th December 2024
Hurricanes and elevated mortgage rates hit sales The large fall in new home sales in October was to be expected given the disruption from hurricanes Helene and Milton, as well as the rise in mortgage rates last month. While sales should rebound this …
26th November 2024
House price growth picks up momentum in the summer The second consecutive moderate 0.3% rise in house prices in September reflects the market picking up momentum over the summer as mortgage rates fell. However, timelier indicators, like the sales-to-new …
Modest rise in homes sales does not mark the start of the recovery The modest rise in existing home sales in October reflects the earlier drop in mortgage rates over the summer and is unlikely to be repeated, as borrowing costs have since rebounded to 7%. …
21st November 2024
Starts hit by hurricanes The decline in housing starts in October was exactly as we had expected given the hit to construction in the South from recent hurricanes and should partially reverse in November. Beyond this, we think the recent rebound in new …
19th November 2024
Rebound in mortgage activity short-lived Rising borrowing costs snuffed out the nascent recovery in mortgage activity in October, with home purchase and refinancing applications both slumping after a promising end to September. This puts to bed any hope …
6th November 2024
Annual house price growth continues to cool A slightly healthier 0.3% rise in house prices in August does not change the fact that the market is rapidly cooling amid weak demand and growing supply. Therefore, we stand by our recent decision to trim our …
29th October 2024
Pick-up in sales to be short-lived The increase in new home sales in September was probably supported by the fall in mortgage rates last month. Rates have rebounded since then, however, which lends support to our view that new home sales will not rise …
24th October 2024
Stagnant existing home sales should rally soon The 1% m/m fall in seasonally adjusted existing home sales in September seems underwhelming given last month’s drop in mortgage rates, but the rise in mortgage applications in September points to a recovery …
23rd October 2024
Multi-family weakness offsets gain in single-family starts The small fall in housing starts in September was entirely due to the multi-family segment, whereas single-family starts rose to a five-month high. While starts will probably weaken this month due …
18th October 2024
In light of both Hurricanes Helene and Milton we are flagging notes where we highlighted the physical climate risks facing the US. Ranking metros by physical climate risks to real estate Elevated insurance premiums continue to hit valuations Unpriced …
14th October 2024
Sharp fall in mortgage rates lifts applications The impact of lower mortgage rates was finally evident in mortgage applications in September, with applications for home purchase rebounding to a three-month high. With mortgage rates falling to little more …
2nd October 2024
Small fall in new home sales not a worry New home sales dropped back slightly in August, which always seemed likely after the 10% surge in transactions the month before, driven by pent-up buyers responding to lower borrowing costs. Still, new home demand …
25th September 2024
House prices lose further momentum Another muted 0.2% rise in house prices in July adds to the sense that the housing market is cooling amid weak buyer demand and growing supply. As price growth continues to moderate quickly with no signs of a turnaround …
24th September 2024
Sales slump, but signs of life emerging The slump in existing home sales in August shows that the sharp fall in mortgage rates since late-July is yet to stimulate the market, although the signs of life in last week’s purchase mortgage applications data …
19th September 2024
Rebound in housing starts The large rise in housing starts in August was due to a rebound in starts in the south, confirming that the July slump was a temporary disruption caused by Hurricane Beryl. The increase in permits, particularly in the …
18th September 2024
Recovery delayed The drop in home purchase mortgage applications in August is surprising given the sharp fall in mortgage rates the month before. Some would-be buyers may be delaying their purchases due to increased concerns about the economic outlook, …
4th September 2024
Softer house price gains reflect looser market The muted 0.2% rise in the national Case-Shiller house price index in June was no shock considering that buyer demand collapsed that month, while supply kept growing. With the spring selling season now over …
27th August 2024
Drop in mortgage rates drives surge in new home sales The surge in new home sales in July was driven by pent-up buyers taking advantage of the sharp drop in borrowing costs last month, after having been sidelined earlier this year by high mortgage rates. …
23rd August 2024
Lower rates set the stage for a recovery in activity The small rebound in existing home sales in July seems underwhelming after last month’s large drop in mortgage rates, but the data are based on completed transactions and so it will take at least …
22nd August 2024
Housing starts hit by hurricane The slump in both housing starts and building permits in July, to the lowest levels since the epoch of the pandemic, only partly reflects the temporary impact of Hurricane Beryl. Accordingly, even though lower interest …
16th August 2024
Sharp fall in mortgages rates should soon support activity July was a disappointing month for mortgage activity overall, with earlier high borrowing costs causing home purchase applications to slide by 5.4% m/m. All the attention, however, will be on the …
7th August 2024
Rising supply weighing on house price inflation Another moderate 0.3% m/m rise in house prices in May adds to the evidence that sellers are losing their grip on the market due to increasing supply. Do not write our forecast for a 5% gain in house prices …
30th July 2024
New home sales remain weak New home sales were essentially unchanged in June after their 15% slump the month before, not helped by mortgage rates which remained stubbornly high at around 7%. So far in July, borrowing costs have declined and currently sit …
24th July 2024
Spike in rates takes sales to 13-year low The sharp rise in mortgage rates in April was the catalyst for existing home sales falling to a 13-year low in June. However, borrowing costs have since receded and timelier indicators of activity such as mortgage …
23rd July 2024
Multi-family driven increase in housing starts The rise in housing starts and building permits in June is not as good as it seems at first glance, as it was driven by gains in the volatile multi-family sector, which we think will prove temporary. …
17th July 2024
Despite rising in June, mortgage applications consistent with weak home sales The decline in mortgage rates back below 7% helped mortgage applications for home purchase to rise by 5.1% m/m in June. That gain was tiny in the context of the ongoing …
3rd July 2024
New home sales fall to six-month low The 11.3% m/m decline in new home sales in May will steal all the headlines, but it largely reflected a significant upward revision to the April sales number, leaving us somewhat confused at the overall health of the …
26th June 2024
