US: Housing market on track for a solid 2018 - ING


Jonas Goltermann, Developed Market Economist, at ING, explained that US home sales improved in February while prices keep rising. He sees the housing market on track for a solid 2018. 

Key Quotes: 

“After falling for a couple of months, sales of existing homes rebounded in February, rising by 3% MoM. New home sales also did a bit better in February, falling by 0.6% on the month (and January sales were revised up to -4.7% from -7.8%). Pending homes sales, an indicator for sales in the next two months also increased by 3% on the month, indicating the improvement in sales is likely to continue into spring, though some markets may have been adversely affected by winter storms in March.”

“While we expect household income to grow robustly as the US economy expands and a tight labour market pushes wage growth higher, affordability will remain challenging (...) We think prices may struggle to rise much faster, and developers selling new homes may have to accept somewhat lower prices in order to move their inventory.”
    
“A key question for coming months is whether the outstanding supply of new homes will start to clear. That would encourage developers to increase building further, though given the affordability picture we would expect to see more focus on moderately priced homes.”

“With solid momentum in the economy, the housing market looks in good health and increasing construction should help the US reach 3% GDP growth in 2018.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD at daily lows, dragged by Sterling

Turmoil around Brexit and the absence of any other relevant catalyst weighs on the common currency, EUR/USD battling with 1.1120.

EUR/USD News

GBP/USD loses 1.2900 as Parliament says “NO”

The UK Parliament has rejected PM Johnson’s time table, lifting odds of an upcoming election in the kingdom. Volatile trading ahead of more clarity as the drama continues.

GBP/USD News

USD/JPY holds steady above mid-108.00s

The USD/JPY pair failed to capitalize on the early uptick to multi-day tops and is currently placed at the lower end of its daily trading range, just above mid-108.00s.

USD/JPY News

Gold heads higher as Brexit uncertainty prevails over trade-deal hopes

In the final hour of trade on Wall Street, spot gold was moving in on the 1490 level, trading higher by 0.22% having travelled between a low of $1480.91 and a high of $1489.04.

Gold News

Top 3 price prediction BTC, ETH, XRP: CFTC takes a surprisingly bold step to move cryptos forward

The CFTC is open to Ethereum futures without anyone picking-up the ball. XRP is currently the only bullish option currently in the Top Three. Current volatility levels have last been seen in May.

Read more

Forex MAJORS

Cryptocurrencies

Signatures