Fixed Income

Is the U.S. Housing Market Slowdown Cause for Alarm?

February 27, 2019
Our analysts have identified three key factors that make us believe that the current U.S. housing slowdown is unlikely to be severe.

Key Points

  • After a period of strength, the U.S. housing market has recently shown signs of softening, with price gains slowing noticeably.
  • Our analysts have identified three key underlying factors, which make us believe that the current housing slowdown is unlikely to be severe.
  • Mortgage-backed¬†securities backed by¬†nonqualified mortgage loans are specifically favored by our analysts at this point in the cycle.

Please read the transcript at your leisure.

All investments are subject to market risk, including the potential loss of principal.  Fixed income securities are subject to credit risk, liquidity risk, call risk and interest-rate risk. As interest rates rise, bond prices generally fall. Mortgage-backed securities are also susceptible to prepayment risk, which occurs when homeowners pay off their loans early.

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