This happens to be a good time to restate the sequence in which housing data runs:
- 1st, interest rates turn
- 2nd, home sales turn
- 3rd, home prices turn
- 4th, inventory turns
The reason this is a good time to examine the timing is because mortgage rates made a 50 year low in late 2012. Then in mid 2013 we had the “taper tantrum” which caused rates to rise close to 2%. Then rates settled down roughly in the middle.