US Housing Market Update Mortgage debt service ratio to remain low The surge in mortgage rates has led to a sharp deterioration in home affordability. But that doesn’t mean the mortgage debt service ratio, the share of disposable income spent on mortgage payments... 19th May 2022 · 3 mins read
US Housing Market Data Response Existing Home Sales (Apr.) Existing home sales fell once again in April, although for now they remain above their pre-COVID-19 level. But, with mortgage rates set to stay high and credit conditions unlikely to loosen... 19th May 2022 · 2 mins read
UK Housing Market Update Rental growth approaching a peak Record high rental growth at the start of the year is likely to mark a peak given signs that tenant demand is starting to ease. But strong wage growth and the rising cost of buying as mortgage rates... 19th May 2022 · 2 mins read
US Housing Market Data Response Housing Starts (Apr.) Housing starts dropped by a marginal 0.2% m/m in April, driven by the single-family sector which also saw building permits fall for the second month in a row. Housing demand is faltering due to a... 18th May 2022 · 2 mins read
Canada Economics Update Fall in house prices to contribute to lower CPI inflation The 10% fall in house prices that we expect over the next 12 months will also help to pull down CPI inflation, via its impact on shelter costs. Admittedly, shelter inflation is unlikely to decline... 16th May 2022 · 2 mins read
UK Housing Market Outlook House prices heading for a fall If we are right that the Bank of England will have to raise interest rates to 3.00% to stamp out inflation then we are on the cusp of the fastest increase in mortgage rates since the late 1980s. That... 13th May 2022 · 22 mins read
UK Housing Market Data Response RICS Residential Market Survey (Apr.) The housing market shrugged off the effects of rising mortgage rates and the cost-of-living crisis in April as intense competition between buyers bid up prices further. However, with mortgage rates... 12th May 2022 · 2 mins read
US Housing Market Chart Pack Mortgage rate rise hits housing market activity The rise in mortgage rates, to a 12-year high in mid-April, is now starting to weigh on housing market activity, with new and existing home sales falling back over the past couple of months. With... 10th May 2022 · 9 mins read
Canada Economics Weekly Cracks in housing market risk turning into chasms The slump in home sales in April, combined with the unexpected fall in hours worked, point to downside risks to GDP last month. While hours worked are set to rebound in May, there is likely to be much... 6th May 2022 · 4 mins read
UK Commercial Property Data Response S&P Global/CIPS Construction PMI (Apr.) The construction PMI for April showed that building activity remained solid, but that the pace of growth has slowed. An easing in new orders growth also hints at a further slowdown ahead, as the... 6th May 2022 · 2 mins read
UK Housing Market Data Response Halifax House Prices (Apr.) In contrast to Nationwide’s measure of house price inflation, there was no sign of house price growth slowing in the Halifax figures for April. But with mortgage rates only just starting to climb to... 6th May 2022 · 2 mins read
US Housing Market Update Rise in rates to bring more vacant homes to market Homebuyers looking for more space were contending with low numbers of larger homes for sale in the first quarter, not helped by an apparent rise in investor demand for bigger properties. But rising... 5th May 2022 · 3 mins read
Canada Economics Update Spring market brings deep freeze for home sales The steep declines in home sales across Canada’s major cities reinforces our view that a downturn in residential investment will prevent the Bank of Canada from raising interest rates by as much as... 4th May 2022 · 2 mins read
US Housing Market Data Response Mortgage Applications (Apr.) The sharp rise in mortgage rates over the past couple of months, to a 12-year high of 5.37% in the middle of April, is now weighing on mortgage demand. Home purchase applications dropped to their... 4th May 2022 · 2 mins read
UK Housing Market Data Response Mortgage Lending (Apr.) Unchanged mortgage approvals in March showed that the housing market remained buoyant throughout the first quarter. But the emerging trend of rising mortgage rates on new loans rising will only... 4th May 2022 · 2 mins read