Housing market may have peaked

Monthly housing indicators released last week were mostly to the downside. Homebuilder sentiment waned, existing home sales declined, and single-family housing starts and building permits slowed (but starts and permits were both up for multifamily dwellings). There were some positives from the housing data, plus initial jobless claims remained low while the index of leading economic indicators (LEI) moved higher (but the 12-month growth rate slowed).

What we learned last week (pg. 1)

• Mortgage rates reach the highest level since 2011
• Median price of existing homes sold continues to rise quickly

What we’re watching this week (pg. 2)

• A small increase in new home sales expected for March
• Quarterly real GDP growth expected to slow sharply
• Strong consumer spending growth expected, boosted by inflation