Paul Ferley
Paul Ferley
below bubble close conditions expectation gains growth housing increases moderate mortgage present price prices rates recent require rising sharp since slow soon start thus
Bubble conditions may not be present yet but are approaching such and thus require close monitoring going forward. To allay this concern, housing price increases will need to start to moderate soon from recent sharp increases. Our expectation is that this should occur, since rising mortgage rates should slow the growth in housing prices to a rate below gains in income.
evident expected fed housing saw shipments starts strength stronger
The day saw some offsetting developments with strength evident in U.S. housing starts and the Philadelphia Fed index and in Canada, a stronger than expected manufacturing shipments report.
exception generally indication move paid prices provides saw strength
We saw most of the indicators move up in the month, with the exception of the prices paid index, which generally provides an indication of strength in activity.