• Goldman Sachs on Housing Slowdown

    9 days ago - By Calculated Risk

    A few brief excerpts from a Goldman Sachs research note today: The Housing Slowdown
    The most likely drivers of the slowdown are higher interest rates and tax reform. CR Note: We discussed these two key headwinds at the beginning of the year. Goldman Sachs economists estimate that two-thirds of the recent slowdown is due to higher interest rates.
    We expect higher interest rates and tax reform to remain headwinds, but see the low level of homebuilding relative to demographic trends as a medium-run tailwind. CR Note: The demographic tail-wind isn't as strong as I thought a few years ago...
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