Today on the radio show Lykken on Lending, host David Lykken and I spoke about the state of the U.S. housing market.
My participation starts at the 40:00 mark
To illustrate some of the points made on the broadcast, I am posting a this chart.
1. Purchase Application Data
One of the reasons why I expected flat growth in 2017 is that I didn’t believe we could repeat the 25% year over year growth we saw in the heat months of 2016. As I expected, this year we are seeing growth between 0.1% -6%. Purchase applications are still growing but we are only back to 1998 levels with 165 Million people working, unemployment claims at 44 years lows, job openings at 5.6 million and rates below 5% since early 2011. Demographics for housing will improve in a few more years.
From Calculated Risk:
The housing market, so far, is outperforming my estimates for this year, as I describe in my previous articles listed here:
Articles to go over that
Strong Pending Home Sales Bust the Low Inventory Myth
Existing Home Sales Look Excellent
The April fool joke article here, mocking the Great American Recession bears of 2009-2017
The United States Is Close To A Recession
Logan Mohtashami is a financial writer and blogger covering the U.S. economy with a specialization in the housing market. Logan Mohtashami is a senior loan officer at AMC Lending Group, which has been providing mortgage services for California residents since 1987. Logan also tracks all economic data daily on his own facebook page https://www.facebook.com/Logan.Mohtashami