Expect housing in 2019 to be
flat. The recent decline in mortgage rates from 5% to 4% for the 30-year-fixed
provides some support for housing.
However, the tax-law change, which took away many of the tax benefits of
homeownership, weighs on demand. The impact of the new tax law is still
filtering through the housing market, particularly in more expensive markets
like California, and Florida, where those tax benefits are more important.
Affordability remains an issue. The
runup in house prices over ...