HOMZ - Trouble At Home? COVID-19 Challenges The U.S. Housing Market
By Robin Marshall, Director of Fixed Income Research, FTSE Russell
Pre-COVID-19, the US housing market appeared robust...
Before the COVID-19 shock, several factors combined to suggest the US housing market was more robust than in 2008. These factors were (1) greater financial regulation in mortgage finance since the Global Financial Crisis ((GFC)), (2) lower borrower leverage, (3) a smaller share of non-agency mortgage issuance after the sub-prime bust, (4) homeowners with greater equity in housing valuations, (5) absolute mortgage rates much lower than in 2008, helped by lower US Treasury yields, and (6) US unemployment