The Census Bureau recently reported a homeownership rate of 64.2% in the first quarter of 2019, up from the 10-year low of 63.7% in the first quarter of 2015.
A recent study by LendingTree shows that 67% of homeowners surveyed aged 22 and older believe that owning a home is a better option that renting. In addition, the longer you remain in a home, the stronger you believe that owning is better than renting. The survey revealed that 72% of homeowners who have resided in their home for seven to nine years agree with the statement.
The survey also showed that about 15% of homeowners believe renting is easier than owning a home, and another 18% are neutral on the topic. “Just 13% of homeowners across all ages wish they could go back to renting, but when broken down by age, 1 out of every 5 homeowners ages 22 to 37 say they miss renting.”
In conclusion, the US “Goldilocks” economy includes:
- Slowing home price gains
- Rising wages
- Uptick in homes for sale
- Strong job market
- High Consumer Confidence
- Historically low rates
The above points will continue to be a tailwind for new homebuyers on their way to the American Dream of owning a home.
This coming week we will get a look at the health of the US consumer as Retail Sales for April will be released. Consumer spending makes up almost two-thirds of US economic activity, so Retail Sales is a great gauge of the economy.
The strong Retail Sales number in March pushed Gross Domestic Product to one of the strongest first quarters in many years.
The markets will also get readings on housing and manufacturing.
US/China trade issues will continue to dictate the path of where US markets and home loan rates move, with positive headlines good for stocks, bad for bonds and rates, and vice versa.
Reports to watch:
- Retail Sales will be released on Wednesday along with the Empire State Manufacturing Index.
- On Thursday, Housing Starts and Building Permits will be delivered, along with Weekly Initial Jobless Claims and the Philadelphia Fed Index.
Friday brings Consumer Sentiment.
Rev. 05.11.19 (0519-3398)