Questions are bubbling up about whether the recent run-up in U.S. housing can continue. With mortgage rates on the rise and housing stocks swooning, some analysts wonder how much further housing can run. Per the Wall Street Journal:
“It is certainly a warning signal that conditions in the housing market are nowhere near as rosy as homebuilders, real estate agents, and their enablers in the media are so keen to represent,” said Joshua Shapiro, chief U.S. economist at MFR Inc. He added “speculative demand” continues to be one of the main drivers of the housing recovery.
New data this week will help shed light on housing's direction. The S&P/Case-Shiller home price index is due out Tuesday morning, while the National Association of Realtors posts its July pending-home sales on Wednesday. See the HW Economic Calendar for more details.