The adoption of electric vehicles has grown tremendously over the past year and a half. The trend will accelerate as consumer demand, which is being fueled by higher gasoline prices, tax incentives, funding from the Inflation Reduction Act, and the increased desire for environmental sustainability, ... READ MORE >
The American housing deficit and what it takes to close it
Over the past 15 years, the United States has not built enough houses to keep up with growing demand. The problem intensified during the pandemic as demand skyrocketed because of the shift to working from home and historically low mortgage rates encouraged this move. We estimate that at the end of ... READ MORE >
The housing market will endure interest rate hikes
Two years into the pandemic, the housing market remains on fire and shows few signs of receding. What was initially fueled by buyers' need for more space and a low interest rate environment has proven to have staying power. Now, with inflation hitting 7.9%, a 40-year high, in February, the Federal ... READ MORE >
The hot housing streak endures: Spring 2022 outlook
The housing market, while strong, is hampered by limited supply. Home affordability is set to be challenged by rising interest rates. Builders continue to be constrained by the limited supply of materials and their rising costs. Read about other sectors The spring housing market might not be as ... READ MORE >
Despite Zillow’s retreat, iBuyers show promise
Zillow’s decision to pull the plug on Zillow Offers, its tech-powered business of buying and selling homes, came as a surprise amid the still-hot housing market and prompted a question: Is the business model flawed? As the third-quarter earnings reports from two of Zillow's competitors showed, it's too ... READ MORE >
Chart of the day: Home affordability continues to drop
U.S. housing was less affordable in the third quarter than in the previous quarter, with the composite homebuyer index dropping from 151.9 to 150.8, and the first-time buyer index dropping from 100.1 to 99.2, according to data released this week by the National Association of Realtors. A value of 100 ... READ MORE >
iBuyers, offering convenience at a price, disrupt home sale market
Consumers have long been frustrated by the difficulty and uncertainty that go with buying and selling a home. Whether it’s the balancing act of properly timing a home sale and a purchase, making even small repairs in advance of a sale, or simply raising the cash for a down payment, the process only ... READ MORE >
Hispanic ascendant: challenges, opportunities and the real economy
Given the growth and economic power of the Hispanic community in the United States, we believe it will strengthen the backbone of the real economy, helping the country solve a range of issues in the post-pandemic world, such as labor shortages, dampened population growth, and structural economic ... READ MORE >
Home builders, facing shortage of materials, can’t meet soaring demand
Even as the housing market continues to lead the economic recovery in the United States, home builders, whipsawed by more than a year of dramatic changes fueled by the pandemic, are facing new pressures as they try to meet surging demand. Already, builders have been scrambling to find enough workers to ... READ MORE >
CHART OF THE DAY: Mortgage rates resume their downward march
Ten-year U.S. Treasury yields have drifted lower over the past couple of months, bringing mortgage rates to the lowest levels in nearly six months and well below historical levels. The average rate for a 30-year loan was 2.77% on Aug. 5, the lowest since Feb. 11. The historically low borrowing costs, ... READ MORE >