Homeownership Rate in Second Quarter 2008 Rebounds By Largest Increase in Four Years
The chart above is based on the Census Bureau's latest release on home ownership rates, and shows the following:
1. The howeownership rate fell below 68% in the last quarter of 2007 (67.8%) and first quarter of 2008 (67.8%) for the first time since early 2002, as part of a four-year downward trend since the 69.2% peak level of homeownership in 2004.
2. The .30% increase in homeownship for the second quarter of 2008 to 68.1% was the first quarterly increase in almost two years (since third quarter 2006), and was the largest quarterly increase in four years (since second quarter 2004).
Bottom Line: If this rebound in homeownership rates continues to reverse the four-year downward trend, it could provide further evidence that we are finally experiencing a bottom to the housing market problems, as suggested by Larry Kudlow (The Media Are Missing the Housing Bottom) and Brian Wesbury ("Pace of existing home sales is very close to a bottom," and "Pace of new home sales has either already hit bottom or is getting very close to the bottom.")