Record-high housing prices in the US could collapse by up to 20 percent over the next year if a recession sparked by Joe Biden’s inflation takes hold, a top Wall Street economist has warned.
Investors globally are wondering – after CPI sent the ‘peak inflation’ narrative to the bottom of the ocean and Powell’s Jackson Hole speech (and this FOMC statement and press conference) crushed the ‘Fed Pivot’ narrative – what other potential indicators/signals (aside from a multi-month slowdown in inflation of course) could prompt Powell and his pals to back off their uber-hawkishness?
Newsfeed: Here Are Some Things The Fed Will Break If It ‘Contains Inflation’ Read More »
Tl;dr: For the 3rd meeting in a row, The Fed hiked 75bps as expected but signaled a much more hawkish than expected future trajectory of rates (higher for longer).
The average interest rate on the most popular U.S. home loan climbed to its highest level since October 2008, Mortgage Bankers Association (MBA) data showed on Wednesday.
Newsfeed: U.S. mortgage interest rates reach 6.25%, highest level since October 2008 Read More »
Following yesterday’s 9th straight monthly decline in US homebuilder sentiment – the longest losing streak since 2014 – this morning’s housing starts and permits data will be watched like a hawk (the former expected to see a small bounce MoM and the latter – more forward-looking – a big tumble MoM).
Newsfeed: US Building Permits Crash In August, Multi-Family Starts Hit Record High Read More »
More builders are lowering prices for homes as their confidence in the market continues to tumble. Homebuilder sentiment in September fell 3 points to 46 in the National Association of Home Builders/Wells Fargo Housing Market Index. Anything below 50 is considered negative.
Newsfeed: More homebuilders lower prices as sentiment falls for ninth straight month Read More »
Treasury yields climbed on Monday as traders anticipated the Federal Reserve’s next moves in the face of persistently high inflation.
Newsfeed: 10-year Treasury yield jumps to 3.51%, the highest level since 2011 Read More »
Last November, housing consultancy firm Zillow lobbed the first warning shot that the housing bubble had burst, when it shocked markets by firing 25% of its workforce, and announcing it had scrapped its robo-flipping program after losing hundreds of millions by allowing robots to buy and sell homes.
As inflation remains at the highest level in more than 40 years, millions of Americans are facing financial hardship due to rising consumer prices.
Newsfeed: Inflation Causing Hardship For Majority Of US Households Read More »
And the hits just keep on coming for the US housing sector. Three months after hitting the highest level in 14 years, on Thursday mortgage rates hit a fresh post-financial crisis high when they topped 6%, a jolt to home buyers who last year were paying less than half that.