Deutsche Bank Securities analyst Torsten Slok

A gorilla-in-the-room question--bedeviling both housing and those who'd like to get a sense of where the broader economy is headed--has to do with wage inflation. All the guesswork on what happens to wage inflation centers on labor force participation rates, which have been suppressed.

In other words, more adults who could work, are opting not to try to re-enter the labor pool. The reasons for this are a matter of speculation. Many guess that older workers--nearing retirement age--are dropping out of the labor force rather than to try to re-enter and find a new job after having been laid off.

Bottom line, the fact that hordes of workers are not apt to try to re-enter the labor pool, driving down wages, means that wage inflation is likely.

The good news about that for housing is that higher household incomes mean that maybe more people would qualify for mortgage loans.

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