Federal Reserve Chairman, Janet Yellen, recently updated congress on the housing market. She points out that the housing market has leveled off:
The housing sector has shown little recent progress,
Yellen testified to the Senate.
While this sector has recovered notably from its earlier trough, housing activity leveled off in the wake of last year’s increase in mortgage rates, and readings this year have, overall, continued to be disappointing. The recent flattening out in housing activity could prove more protracted than currently expected rather than resuming its earlier pace of recovery.
It appears that the housing market has bounced up to an equilibrium level associate with the current employment and household income levels. Interest rates are not expected to drop; therefore, we will need to see rising employment and income in Orange County before we can anticipate additional increases in the price level of homes.
Bring on the jobs!