The same forces that are making the U.S. housing market look good, as we covered in yesterday’s post, are also increasing the strength of the dollar. The problem is that a strong dollar means cheaper imports, which ultimately puts a drain on U.S. manufacturing and the economy as a whole, which reduces people’s ability to purchase homes at the higher rates reported yesterday. Bottom line: very few economic changes are one-sided, and if you get all excited about one piece of news, you’re probably missing the piece on the other side of the balance scale. Ignore the news, buy the right house for you at the right time for you, not at the right time according to the news.
