Source: London South East —
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STAYING DEFENSIVE WITH DIVIDENDS AND REAL ESTATE (1220 EDT/1620 GMT)
U.S. housing data has recently been a bit wobbly, says Saira Malik, chief investment officer at Nuveen, and has significant implications for the housing sector and the broader economy.
Among other factors, Malik cites deteriorating homebuilder and consumer sentiment, higher mortgage rates, historically low affordability, declines in housing starts and building permits, and record-low inventories of existing homes for sale.
That said, Nuveen doesn’t see evidence of a housing bubble that’s about to burst. Instead, Malik says there’s neither a bubble nor bottom for the U.S. housing market.
“Consumer pessimism aside, demand for homes is still healthy. Further, mortgage rates have moderated since the spring and lending standards remain rigorous.”
Additionally, though homebuilder confidence is down sharply this year, Malik says it is, nevertheless, above its long-term average. That said, she admits plenty of pain remains, especially for renters.
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