How A Surprisingly Strong Housing Market Could Jump The Rest Of The US Economy

How A Surprisingly Strong Housing Market Could Jump The Rest Of The US Economy

The novel coronavirus COVID-19 pandemic has exacted a huge toll on the global economy, no less in the US.

But as states begin to open up, economists at ING are sounding an optimistic note about the US housing market.

According to Business Insider, they predict the US will experience a V-shaped rebound in home sales: a steep drop followed shortly by rapid acceleration.

This week, to the surprise of economists, new home sales jumped 17% as buyers rushed back to the market.

Mortgage applications dropped slightly this week, but are a staggering 18% higher on the year and last week hit an 11-year high.

And while existing home sales fell 9.7% in May, the National Association of Realtors expects it was the low point before what's expected to be a solid rebound.

ING's chief international economist says home sales will boost the economy beyond the purchase of the home.

As people move to a new home they typically also spend money on new home furnishings, garden equipment...and a bit of home improvement.

James Knightley Chief International Economist, ING