Shelter Six:  Three Straight Years of More Buyers Than Renters

March 18, 2019 by · Leave a Comment 

A vote passed last week extending the Brexit departure date from March 29 to June 30, but there continues to be great uncertainty around if and when the UK will leave the EU.

Last week’s inflation news was very positive as the latest Consumer Price Index figures increased less than expected.

According to the U.S. Census Bureau, there were 1.6M owner-occupied households formed in 2018, the largest annual increase since 2004.

After a nine-year stretch from 2007 to 2016 where the number of new renters exceeded the number of new buyers each year, we have now had three straight years of more buyers!

The surge in new buyers has fortunately led to a spike in the homeownership rate to 64.8% in the 4th Quarter of 2018, up from the low point of 62.9% in the 2nd Quarter of 2016.

With appreciation moderating, mortgage rates declining, and wage growth strengthening, the MBA’s latest projection is for purchase origination volume to increase 4% per year in both 2019 and 2020.

Rate Update

Mortgage markets remain jittery around the uncertainty of Brexit.  Along with last week’s weaker-than-expected inflation data, this led to rates falling to the low point in over a year.

This Week

It will be a light week for economic data.  The big story will be the Fed meeting on Wednesday.  The most significant economic report will be Existing Home Sales on Friday.