There Goes The Housing Market
Since the Fed is rushing to hike the US into a deep recession just so inflation will (supposedly) slide ahead of the November midterms, in line with Biden's demands, the housing market is eager to comply with Powell's and Biden's handlers' wishes, and is leading the charge into the economic abyss, as we discussed most recently here, and as the latest nationwide survey of new home builders confirms.
Last week, Zillow's dismal outlook stoked fears that rising mortgage rates would result in the next downturn. On Monday night, Airbnb co-founder and CEO Brian Chesky warned: "this moment feels similar to late 2008 when we started" the online marketplace for lodging.
It should: the surge in mortgage rates means that housing affordability has crashed to the lowest on record.
And nos there's this: John Burns Real Estate Consulting provides a monthly snapshot of more than 300 builders across the nation. Here are a some comments from the builders, according to tweets from the firm's director of research:
- Demand is slowing, namely entry-level due to payment shock.
- Investors are pulling back.
- Ripple effect of rising rates starting to hit move-up market. Market commentary to follow