US housing: the price is becoming right (A. Markowska)

US housing: the price is becoming right (A. Markowska)

As housing goes, so goes the economy. Today, this is as true as ever. The Fed hit a pause button on tapering after mortgage rates rose sharply, and it awaits more evidence of sustained progress. While some housing indicators softened in recent months, we remain optimistic on demand. We explain why below.

SG: Eco Analysis - US Housing: New home sales rose modestly in October (B. Jones)

Eco Analysis - US Housing: New home sales rose modestly in October (B. Jones)

■ Closings on newly constructed dwellings moved higher in October

The number of newly constructed dwellings going to contract rose by 1.3% to a five-month high seasonally adjusted annual rate of 307,000 in October. The reported level of activity last month was below both our (330,000) and the median Street projections (315,000), however. Moreover, back-month revisions shaved 15,000 off the previously posted tallies for July through September.

SG: US Housing: Home prices dipped again in August

■ Home prices moved lower in 20 US cities during August (B. Jones)

S&P/Case-Shiller (SPCS) reported that home prices in the 20 US cities that they track fell by 0.05% in August, after a downward revised 0.15% decline in July. The August print marked the fourth consecutive monthly slide and was weaker than the median Street expectation for a 0.1% rise. Since April, home prices have fallen by 0.3%, erasing three quarters of the rise posted in that month. The reported August dip left the index 3.8% below its year-to-year level the smallest 12-month decline since April.