The Great Recession — and the housing boom and bust that set the stage for it — are fading into distant memory. But a decade into the recovery, the U.S. housing market continues its frustratingly slow return to normalcy.
Underlying Economy is Strong
Traditionally, the economy drives the housing market, and this should be good news for anyone in the real estate or mortgage industries today. Virtually every measure of economic performance is pointing toward driving demand for new and existing home sales.
Gross Domestic Product is fairly strong. Inflation, which has begun to climb as the economy has heated up, still remains under control. Unemployment rates are near historic lows, even as labor force participation rates have begun to creep back up. The country is creating about 200,000 new jobs a month, and unlike the temporary, contract and government jobs that were so typical during the early years of the recovery, these jobs are delivering sustained wage growth.
Source: Mortgage Daily