Delivering Global Macro Investment Insights

DeSaque Macro Research

DeSaque Macro Research Limited was formed by Said DeSaque in April 2012 with the view to delivering global macro investment insights aimed at providing new ideas to clients.

Said DeSaque has over 26 years of experience working as a professional economist in financial services. Prior to establishing DeSaque Macro Research, Said held positions as Senior Economist at Robert W Baird and William Blair. He began his career as a graduate at PaineWebber in 1986, where he eventually became Head of the London Economics Department.

Said takes a very keen interest in international relations, along with their implications for economic development. His research interests include the economic transformation of China and its implications for global capital markets, particularly in the United States. He is a member of Chatham House in London.

The US economy and capital markets have historically been Said’s main focus of attention. He frequently presents his views to institutional investors in diverse geographic locations. In recent years, Said has also been carefully monitoring economic developments in Asia, particularly China and Japan.

Enhancing US Household Affordability: Bifurcated Economy Raises Risks of Unintended Outcomes

Poor Affordability and Structural Issues Take Their Toll on US Housing

Global Economist, DeSaque Macro Research

Said Desaque

Global Economist

Macroeconomics

<ul>
<li>The post-pandemic return of inflation and higher interest rates has had negative implications for US housing affordability. Rising mortgage rates since March have further dented the prospects for improved affordability.</li>
<li>Housing affordability has deteriorated to its lowest level since the 1980s. Apart from lower interest rates, better affordability will require future household income gains persistently outstripping home price appreciation.</li>
<li>Full federal government guarantees on Fannie Mae and Freddie Mac mortgage-backed securities would enhance housing affordability. Mortgage buydowns by homebuilders should be eliminated because they artificially boost market-clearing prices . </li>
</ul>


The post-pandemic return of inflation and higher interest rates has had negative implications for US housing affordability. Rising mortgage rates since March have further dented the prospects for improved affordability.
Housing affordability has deteriorated to its lowest level since the 1980s. Apart from lower interest rates, better affordability will require future household income gains persistently outstripping home price appreciation.
Full federal government guarantees on Fannie Mae and Freddie Mac mortgage-backed securities would enhance housing affordability. Mortgage buydowns by homebuilders should be eliminated because they artificially boost market-clearing prices . 


US Housing: The Lingering Curse of Poor Affordability Intensifies