Home sales enjoyed a strong end to the year, with both new and existing sales now close to 11-year highs. But that boost to sales was not accompanied by any rise in mortgage applications for home purchase, which have made no upward progress over 2017. That lack of demand from mortgage-dependent buyers suggests that sales growth will not maintain its recent pace; particularly for existing home sales where inventory levels are at record lows. House prices are rising at around 6% y/y, but we doubt growth will strengthen much further over the next few months.
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