Market Commentary

Housing

home prices

The new Case/Shiller 20 home survey came out and prices rose again. They slightly accelerated from the summer months, up 2.9% year over year. For 2019, home prices rose 5.1% according FHA. It is obvious why as interest rates for a 30-year mortgage has fallen to below 4%.

The recent spread of the coronavirus has pulled down the yield on the 10-year treasury. Mortgage rates generally track the 10-year and they too should fall a bit more. That can only mean housing is likely to continue to be strong.

The new home sales report out this morning was up 7.9% in January to 764,000 annual rate. Builders are confident and as we saw in a recent report permits for building are up.

The Coronavirus will affect every aspect of many economies, including ours, but it will not all be bad.

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