Wednesday, May 20, 2020

Housing permits and starts plummet in April, but mortgage applications suggest big rebound in May

 - by New Deal democrat

At some point it is going to be safe for the economy to be completely reopened. When that point comes it would be nice if the leading sectors of the economy have already been priming the pump for a consumer rebound.  As usual housing is the most important long leading sector in that analysis.

As expected, housing tanked in April. But it is likely setting the baseline for improvement in the coming months, as new record low mortgage rates have brought out new buyers, as shown by new mortgage applications which as of this morning are only -1.5% below where they were last year at this time.

This post is up at Seeking Alpha. As usual, clicking over and reading should be educational for you, and helps reward me a little bit for my efforts.