David Ader, Columnist

Housing Trends Will Keep U.S. Interest Rates Suppressed

An aging population will be starting to downsize.

April 13, 2017 at 9:00 AM UTC

David Ader is the former chief macro strategist at Informa Financial Intelligence and held similar roles at CRT LLC and RBS/Greenwich Capital. He was the No. 1 ranked U.S. government bond strategist by Institutional Investor magazine for 11 years, and was No. 1 in technical analysis for five years.

Homeownership rates on the decline.
Photographer: Justin Sullivan

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If we’re all downsizing, who’s upsizing?

That question should be critical to aging and retiring baby boomers whose main “asset” is the equity in their homes. If current demographic trends remain in place -- and there is not a shred of evidence that they won’t -- then we are facing a generation of subdued home demand even as retirees will be looking to sell. We’re not even considering the impact of what “normalized” interest rates means for mortgage borrowing.