The Housing market September 2015: a good example of leading and lagging trends

This happens to be a good time to restate the sequence in which housing data runs:

 

  • 1st, interest rates turn
  • 2nd, home sales turn
  • 3rd, home prices turn
  • 4th, inventory turns

 

The reason this is a good time to examine the timing is because mortgage rates made a 50 year low in late 2012.  Then in mid 2013 we had the “taper tantrum” which caused rates to rise close to 2%.  Then rates settled down roughly in the middle.

 

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