But, when the Federal Reserve will be able to keep interest rates in the near future, there is hope that the housing market will begin to recover.
On Monday, the National Association of Building Builders will release its latest monthly builder survey. In February, confidence grew due to the fall in mortgage rates, which fell along with the yield of long-term bonds this year.
Mortgage rates have fallen even more recently due to the Fed, as well as concerns over China's economy and the latter. Brexit drama The fixed-rate 30-year mortgage reached last month's 4.31%, the lowest level for the year.
"The housing market benefits from volatility in stock markets," said O'Peta Kushi, Deputy First Economist at First America. "We have a ton of deferred demand from older Millennials sitting at the sidelines waiting to be homeowners. Lower rates should push home sales."
Kushi said that the latest job report is also good for housing. Despite the fact that the number of jobs was disappointing, wages continued to grow. And it can help people try to save money so that they can live at home or rent housing to buy housing.
She pointed to the recent increase in housing construction and the completion of housing construction, as another good sign. The supply is much larger than it was.
"The housing market remains ready for a strong spring," said Joel Cahn, vice president for economic and sector forecasting at the Association of Mortgage Bankers, in his latest mortgage report. At the beginning of the month, the volume of applications for loans increased by 2.3%.
"We are beginning to see signs of more new housing and inventory, which increases the opportunities for many buyers to buy, which hinders the constant lack of supply," Kan said.
will be released on Wednesday.
All this could lead to a turning point in the existing rates of sale of housing in February that will be issued by the National Association of Realtors in on the same day. Sales fell by 1.2% from December to January. But Kushi believes that they have resumed last month.
This should be good news and for housing-related shares that had already begun before 2019, hoping the market is ready for a major return.
2. Reducing Fed Reserve : The US Central Bank will make its final decision on Wednesday at 14:00 ET, and chairman Jerome Powell will speak at 2:30 pm. No raise is expected, so the hot topic is whether the Fed will hint at changes in its so-called quantitative rigid policies.
The firm will publish quarterly earnings updates on Tuesday after closing markets. And if you consider macroeconomic problems, investors will look for how it affects one of the world's largest chicken companies.
Nevertheless, Wall Street awaits good news from Nike when it places its profits after a Thursday call. . It is expected that sales will increase by almost 7%. But investors will pay attention to everything the company says about demand in China and Europe, taking into account recent signs of quality in these countries
5. This week: