THE BASIS POINT

Housing Hurt by Lower Supply, Higher Rates

Redbook Chain Store Sales (week ended 12/24/2016)

– Store Sales year/year +2.1%. Previous was +1.5%

Pending Home Sales (November 2016)

– Pending Home Sales Index month/month -2.5%. Previous was +0.1%.

Housing is being serious hurt by higher prices (caused by low supply), higher interest rates, and the fact that the jobs market is not creating jobs that will allow people to qualify for mortgages especially with the enhanced standards imposed by CFPB.