Insights

Macro Insights Weekly - Resiliency of US residential housing market

27 May 2024
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  • The US housing market, accounting for 15%+ of GDP, has been resilient through sizeable rise in interest rates. The outlook remains constructive, despite higher-for-longer expectations. 
  • Pandemic-induced disruption to home construction has largely abated.
  • Housing completion has picked up, offering some relief to tight supply.
  • Fixed term mortgage rates are high, but hybrid products still offer sub-6% home loans.
  • US households' debt ratio has declined sharply since the GFC.
  • Their debt service ratios are also manageable.

 

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