Why The U.S. Housing Market Will Remain Alive And Kicking in 2016

According to Forbes.com:

The largest positives for the housing sector remain the ongoing gains in employment (and income) and very low mortgage rates.  The unemployment rate is now below 5%, and thanks to decent wage gains and low energy prices, the consumer has more cash in the pocket and therefore can support mortgage payments, renovations, rents, and thus prices.  Despite the overall recovery in the economy that has induced the Federal Reserve to hike interest rates, long term rates remain very low, dragging mortgage rates back down to historic lows. The chart above shows the steep decline in 30 year mortgage rates in the past month; the price of a mortgage will not be holding the buyers back.

Overall, the positive price and sales trends in the housing market look intact. Ongoing economic malaise could dent sentiment on the margin, but cheap financing along with solid employment should provide a deep underpinning to home sales and prices this year.

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