5 reasons to like housing ETFs despite inventory issues

An Uptick in Millennial Home Buyers

Millennials are contributing big-time to the housing market recovery with a keenness to buy rather than rent. For the first time in 13 years, 20- and 30-somethings turned out to give solid impetus to the U.S. housing market.

“The number of homes owned by people under age 35 rose to 36 percent during the fourth quarter of 2017 — up from 34.7 percent over the same period the previous year,” according to the Census Data. As millennials have the prospect of comprising around 75% of the workforce by 2025, the housing sector surely emerges as a long-term bet.

Still-Low Interest Rates

The monthly average commitment rate was 4.33% in Feb 2018, up from 4.17% noticed in the year-ago period but way below the high of 18.45% noted in October 1981, as per freddiemac. In fact, the rates are moderately higher than the annual average of 2017 (3.99%).

According to the chief economist at Moody’s Analytics, “aslong as rates move up to 4.50%, 4.75%, or even 5% because the job market is good and wage growth is improving, it’s no big deal.”

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