Housing data was in focus this week, with April readings showing market impacts from government-imposed shutdowns intended to facilitate virus mitigation. While those impacts were strongly negative, the realized declines have been relatively smaller in the housing industry than initially forecasted.
Moreover, the notable resiliency of housing demand amid historic job losses is an indicator of the potential of the housing sector to help lead the economy in an eventual rebound. While challenges still lie ahead — particularly the possibility for a large, second outbreak of the virus in the fall — the designation of home construction as an essential industry combined with the reopening of major portions of the U.S. economy sets the stage for improving data for the housing sector in the months ahead. Read More