Still, some market observers are worried that the rising mortgage rates could dissuade borrowers to move into new homes.
U.S. home prices are steadily rising to pre-crisis conditions and are back at 2005 levels. Supporting the rising prices, the U.S. housing market may be moving closer to a shortage as the number of available homes for sale dips to its lowest in over a decade.
While many millennials have been forced back to live with families since the recession, Sløk believes that the trend may be reversing and could lead to an increase in housing demand. Moreover, the group of millennials are experiencing a recovery in employment, with the employment rate of people age 25 to 34 back to pre-crisis average, which will also help foster housing demand.
iShares U.S. Home Construction ETF
