FxPro - Analytics

FxPro

761.75 6.25/10
89% of positive reviews
Real

US housing market continues to benefit from coronavirus

The US housing market continues to benefit from coronavirus through an ultra-soft monetary policy and lower spending for Americans who are mostly avoiding a drop in income. The FHFA Housing Price Index added 1.5% in August to an annual rate of 8.1%, the highest since 2006.

US housing market continues to benefit from coronavirus

Separately, more specific but timely data on the prices of new homes for September was released on Monday. The average price of a new house sold reached $405.4K for the first time in history compared to $382.7K ( 5.9%) a month earlier and $372.1K ( 9%) a year earlier.

Looking solely at the housing market as a leading indicator of confidence and expenditure among Americans, one can put aside fears of a repeat recession. Prices for new homes have been slipping at $400K in the last three years but the support measures gave new impulses and may potentially lead to a repeat of the boom of the 1990s, in which the price of new homes from 1992 to 2007 more than doubled.

The FxPro Analyst Team


To leave a comment you must or Join us


By visiting our website and services, you agree to the conditions of use of cookies. Learn more
I agree