The National Association of Home Builders (NAHB) announced its opposition to the new Republican tax plan released today.

The housing recovery continues at a modest pace with 91% of markets showing an improvement year over year, according to the NAHB.

With a strengthening dollar and slowing economies in China, Europe, and many other countries around the globe, numerous negative macro-factors endangering a robust housing recovery exist.

Experts from Fitch Ratings expect home improvement spending to continue its steady rise to 4.5 % in 2016, although the market could face headwinds with rising interest rates and labor constraints in construction.

November 2015's housing data was positive with the exception of existing house sales (-3.8% Y/Y). The volatile multi family sector remains strong (+21.3% Y/Y; ≈35% of all starts) with rents rising.Housing prices are increasing steadily as inventories are low (4.6 months supply for SF, 4.8 months for existing homes). Yet, fewer houses are bought by first time buyers (≈32% now vs. ≈40% historically) due to a variety of reasons. Without the return of these first time buyers, it's hard to envision a return of the housing market to "normal."

The Federal Reserve’s increase in its benchmark short-term interest rate and future rate increases in the next few years will affect the U.S. economy in several ways. But if the increases are gradual, the affect on the U.S. housing market will not be large. Rates will increase on mortgages, but the Fed has emphasized that they will move gradually and in small increments, according to a report in USA Today.

The LIRA projects annual spending growth for home improvements will accelerate to 4.0% by the first quarter of 2016, according to the Remodeling Futures Program at the Joint Center for Housing of Harvard University.