Mortgage Marketing Radio’s Geoff Zimpfer and Logan Mohtashami on the housing market’s resiliency
This week, the Housing News Podcast features a bonus crossover episode from HousingWire’s Daily Download.
In this episode, Mortgage Marketing Radio’s Geoff Zimpfer and HousingWire Columnist Logan Mohtashami discuss why the U.S. housing market is winning in spite of the COVID-19 pandemic’s overall economic impact.
The U.S. economy started the year off in an expansionary mode. Retail sales were positive year over year, job openings were roughly at 7 million and the housing data for the first time in a long time started to outperform other sectors of the economy. Existing and new home sales hit cycle highs, purchase application data showed steady double-digit year over year growth and housing starts had almost 40% year over year growth in February.
Then we were hit with COVID-19, and the fear of this virus along with the economic decline due to the stay-at-home orders whipped the housing bubble boys into a frenzy of crash calls.
My long-standing core thesis has been that the housing market would have the weakest recovery from a crash in the years 2008 to 2019, but it would improve in years 2020-2024 because U.S. demographics would become favorable for housing.
This is the time frame where we should see 1.5 million total housing starts and the purchase application index will get over 300.
The Housing News Podcast is a weekly wrap of the top news stories by HousingWire CEO Clayton Collins. Each week, HousingWire interviews financial services experts who can help make sense of the latest headlines, sponsored by our partners at Arch MI and Quicken Loans Mortgage Services.