(New York)

There has been a lot of gloomy reporting on the real estate market lately (admittedly in this publication too), but the reality is that the market is not in as poor shape as many think. Here are two points to digest. The first is that national US home prices rose 4.3% (annualized) in January, down from a 4.6% gain in December, but still solid. The figure is two percentage points below January of 2018. The second point is that with yields having fallen so far, cheap mortgages (think 4% or less) are back. The big reduction in mortgage expense is fueling fast refinancings, but it also seems like enough to boost home purchases.

FINSUM: The bond market and the Fed’s dovishness might prove to be a big support to the real estate market. Also, considering all the gloomy news, a 4.3% annualized gain in January (the month after the stock market rout) does not seem too bad at all.