However, with the Federal Reserve likely to hold interest rates on hold for the foreseeable future, there is hope that the real estate market will recover.
On Monday, the National Association of Home Builders released their latest monthly survey among builders. Confidence rose in February thanks to a decline in mortgage rates, which fell along with long-term bond yields this year.
Mortgage rates have fallen even more recently thanks to the Fed as well as concerns over the Chinese economy and recent countries Brexit drama. The 30-year fixed rate mortgage reached 4.31% last week, its lowest level in over a year.
"The real estate market is benefiting from stock market volatility," said Odeta Kushi, deputy chief economist at First American. "We have a lot of catching up to do with the older millennials sitting on the sidelines, waiting to be homeowners. Lower interest rates should boost home sales."
Kushi said the recent job report also offers good prospects for housing. Although the number of additional jobs was disappointing, wages continued to rise. And that could help people who want to save money so that they can either live or rent at home to buy a house.
It points to the recent increase in housing construction and the completion of housing as a good sign. The offer is bigger than before.
"The real estate market remains focused on a strong spring," said Joel Kan, vice vice president of economic and industry forecasts for the Mortgage Bankers Association. He wrote in his latest report on mortgage applications. The volume of loan applications rose by 2.3% earlier this month.
"We are beginning to see signs of new housing construction and inventory, which will increase the purchasing opportunities for many home buyers who have been hampered by continued supply shortages," Kan added.
The latest MBA figures on mortgage applications will be released on Wednesday.
All of this could lead to a turnaround in February home sales sold by the National Association of Realtors on Friday. Sales declined 1.2% from December to January. But Kushi believes they recovered last month.
This should also be good news for real estate stocks, which already had a solid start to 2019, in the hope that the market is ready for a big comeback.
. 2 Fed's Cutback : The Federal Reserve will make its last interest rate decision on Wednesday at 2:00 pm ET and Chairman Jerome Powell will speak at 2:30 pm. No rate hike is expected, so it will be hot to see if the Fed suggests changes to the so-called quantitative tightening policy.
The company will make quarterly gains Update on Tuesday after market close. Given macroeconomic issues, which remain a major concern, investors will look at how this affects one of the world's largest courier companies.
Nonetheless, Wall Street expects good news from Nike when it generates revenue on Thursday after the bell. Sales are expected to increase by almost 7%. However, given the recent signs of a soft economy in these economies, investors will pay attention to everything the company says about demand in China and Europe.
5th Upcoming Week: