Morning Report Wednesday 25 March 2015 **Charts Updated**
US Home Sales Rise to a 7-year high - any value out there?
After a relatively quiet night for markets worldwide last night, the headline that caught my eye on Bloomberg was the surprisingly strong rise in the purchases of US new homes. When we consider the excellent strength in the US job market and almost zero interest rates, it’s not surprising that Americans are moving back into the property market, even after the recent kick up in prices.
• The average US 30-year, fixed rate mortgage, is 3.78% in the US. This is over 1% cheaper than in Australia in absolute terms and around 25% cheaper in comparative terms.
I have mentioned over recent weeks that I am keen to spread my portfolio away from a “pure hunt for yield”, to a more growth based bias. However, there is a second very strong thematic that I have a preference for over the next few years:
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