Now what’s ahead for housing? Lower debt to income ratios come January 10th along with some newer tougher guidelines.
With housing having been the biggest driver in pushing the economy forward over the past year or more the events of this week at the mid week report are discouraging to me. First at the beginning of the week as we were flirting with DOW 16,000 the housing market index (AKA Builders Confidence) was again above 50 at 54 but the 4th straight month of no gain. The traffic was also a low number at 42. The report does warn that activity is being held down with low appraisals. Today’s existing home sale report did not do a lot to help the equation. The report showed that sales were down 3.2% in October. The only positive part of the report is that median prices were up .5% to $199,500. The report blames higher mortgage rates and a slow job market.