The Good News About U.S. Housing
| Jun 11, 2014 01:49PM ET
One of the reasons that housing data has been weak this year is that long-term interest rates rose in the middle of last year and created a headwind for home-buyers. As time has gone on, though, interest rates have leveled off and now we’re starting to anniversary last year’s interest-rate spike.
Housing activity started to decline with the spike, so the good news about being a year removed from the initial increase is that housing comps may start to get a little easier from here. New-home sales, for instance, fell to 367k units (seasonally adjusted annualized) in July of last year from 459k in June of 2013. In April 2014 new homes sales were 433k, which is still down from June 2013 levels, but would be an 18% rise over the July levels.
Excitement Builds
The y/y comp game is a little absurd, because it’s just a function of arithmetic between two points in time. Still, you can bet that if July housing numbers (released in August) show an 18% increase in activity, there are people who are going to get excited.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.