Source: New York Fed
One-year ahead, house prices are expected to rise by 7%, higher than the above 5.7% reading of last year. DJI is down -0.25%, DXY is up +0.21%.
- The house price gains are expected to go in tandem with rents, with an annual gain of 11.5%, with the number of renters expecting to own a home reported to be on a decline.
- The rents are expected to rise by 5.2% each year for the next five years. Only 43.3% of Americans see the likelihood of owning a home, a survey record low and below 51.6% in 2021.
- The house prices are, nevertheless, expected to fall in the longer term, with the average annual gain over the next five years expected at 2.2%.
- The rise in house prices happened when NAHB reported a decline in building confidence by two points to 77 in April. This follows a decade-high mortgage rate of around 5%.