I have been bullish on the housing industry for some time now. There are a few reasons. First, the economy, in general, is expanding firmly, and doing so more than anticipated. Job growth has been very steady over the past several years. Not only have jobs been printing decent numbers, but the unemployment rate is well below what most economists consider full employment at 5%; U.S. unemployment is at 4.6%. Having the economy well past full employment means that employees are able to demand higher wages. Those higher wages turn into higher spending.
Then there is the interest rate environment; The Federal Reserve has started to systematically raise interest rates. As interest rates move higher this will prompt many to buy a home before these ultra-low interest rates make it too encumbering for some to afford a home. Home buyers are going to be busy in that kind of environment.
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