Canada’s national statistics agency quietly dropped a Christmas gift for analysts this morning. Statistics Canada (StatCan) data shows household debt-to-income (DTI) climbed sharply in Q3—but the real insight was a bonus DTI normalized for US comparison. The agency notes that American households saw their ratio peak in 2007, while Canadians kept piling on debt until […]
Canadians and Americans may be more alike than they want to admit—especially when it comes to housing. A new report from BMO Capital Markets finds falling prices and cheaper credit have pushed housing affordability to a multi-year high. Still, the bank warns both markets remain near multi-generational lows and have a long way to go […]
American home buyers are cooling their expectations, but they still remain lofty. The S&P CoreLogic Case-Shiller Indices show prices declined in November. At the national level, home prices rolled back 8 months, but retained substantial gains. US Home Prices Fell 0.6% In November US home prices are coming down after a monumental run over the […]
A global real estate correction has kicked off and Canada is expected to lead lower. That was the message from Goldman Sachs (GS) Research’s latest client note on rising rates. Excessively low rates stimulated record home sales and a multi-decade high for inflation. Now that rates are rising to cool that inflation, it’s removing home […]
US mortgage rates are climbing nearly as fast as they were cut just a few months ago. Freddie Mac released its Primary Mortgage Market Survey this week. They found the 30-year fixed rate mortgage is now well over 5%, the highest rate since 2009. Higher costs to control inflation means a lot less time repairing […]
Soaring mortgage costs are rapidly cooling the frothy American real estate market. Mortgage applications and pending home sales cratered, show leading indicators released this week. Demand is being throttled by rising mortgage rates, which are now at the highest level since 2009. Home prices have yet to respond to the fall in demand, but experts […]
US real estate prices were still soaring ahead of the last interest rate hike. The CoreLogic Home Price Index (HPI) reported record annual price growth for February. Most of the performance is due to the South, which has seen a new wave of population growth. The firm doesn’t see this lasting much longer, though. Higher […]
US real estate is in the first bubble since the Great Recession, and they might actually address it in time. In December, we revealed a little-known model from the Dallas branch of the US Federal Reserve showing US housing in a bubble. Central bank researchers maintain the model as an early warning system, allowing policymakers […]
American real estate just spent another quarter in bubble territory, according to its central bank. The US Federal Reserve Exuberance Index shows US real estate was still exuberant in Q3 2021. A quarter before, the market fit the criteria set out by researchers to be considered a bubble. It also happened to be the quarter […]
US mortgage activity is suddenly slowing down as interest rates climb. The Mortgage Bankers Association (MBA) Mortgage Composite Index showed a sudden drop for the week of February 18, 2022. Seasonally adjusted mortgage application activity dropped 13.1% from the week before. On an unadjusted basis, activity dropped 11% compared to the same week a year […]
