With unemployment at a 50-year low, and 30-year fixed mortgage rates dropping to a mere 3.75%, the housing market should be on fire; but it’s not.
Single-family home starts are down 1% from a year ago, while all new home construction starts are at an annualized rate of 1.25 million, below Commerce Department estimates.
The reasons for this malaise include stricter lending standards, price increases and the fact that many Americans no longer view homes as a good investment.