Housing Recovery? Not so fast! YoY Furniture Sales Go Negative; Foreclosures Rise (Again)

I constantly hear “The housing market is back!”
Is it?
True, house prices are rising since 2012 according to FNC, Case-Shiller, Loan Performance and FHFA home price indices.

But Year-over-year furniture sales have turned negative, not a good sign for housing (unless everyone wants to live in empty houses).
At least auto sales are increasing. Perhaps people are parking Chevys in their living rooms instead of furniture.

And foreclosures are heating up again. Completed foreclosures jumped 11 percent nationally in May from the previous month, with monthly increases taking place in 33 states, foreclosure listing firm RealtyTrac Inc. said Thursday.
But if we look at the general trend, we see a decline. The bump in foreclosures comes from the end of state moratoria of foreclosures.

Doug Duncan, the chief economist for Fannie Mae said that he sees interest rates rising by 100 basis points over the coming year. I believe him!

Perhaps the housing market needs a bigger boat!