ROSENBERG: It Looks Like Demand For US Housing Is Cooling Off

Declining inventory and healthy investor demand has helped drive up home prices. And economists have got increasingly bullish about the housing market.

But Gluskin Sheff’s David Rosenberg says he’s seeing signs that housing demand has cooled.

First, “bank-wide real estate credit has turned down again”.

rosenberg credit lending chart

Second, Rosenberg points out mortgage applications fell 1.3 per cent in the week ending April 5th, and have “stagnated over the past six months”. The year-over-year mortgage applications rate which was at 16 per cent pace in January has tumbled to 3 per cent.

This along with rising foreclosure starts, and lackluster job growth does raise some questions about the recovery.

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