Shelter Six:  U.S. Homeownership Rate Surges to 67.9%

August 3, 2020 by · Leave a Comment 

June Pending Home Sales soared 16.6% from May and, in the space of two months, have catapulted from the lowest levels ever to the highest levels in over 15 years.

The May U.S. National Home Price Index rose 4.5% year-over-year, according to S&P CoreLogic Case-Shiller Index, and is now 18.6% higher from where it peaked in 2006.

Second Quarter GDP figures fell a record 32.9% but this was actually a little better than the 35% decline expected, and more recent data has had much better results.

The U.S. Homeownership Rate jumped significantly to 67.9% in the Second Quarter, up from 65.3% the previous quarter and to the highest level since 2008.

The Homeownership Rate peaked at 69% in 2004-2005 before beginning a steady decline to a low point of 62.9% in 2016.

Homeownership was strongest in the South at 71.1% and jumped to 40.6% for those under 35 (up from 36.4% the previous quarter).

Rate Update

The Fed met last week and reiterated that it will do “whatever it takes” to support the economy. 30-year rates reacted by dropping to new all-time lows.

This Week

The ISM National Manufacturing Index will be released on Monday, the ISM National Services Index on Wednesday, and Employment figures on Friday.