Jul 21, 2022
Summary:
Has the housing bubble popped? Is it in the process of popping
right now? Here to give us the latest news on this is Wolf Richter.
The housing market is going through a major shift as stocks decline
and mortgage rates go up. Even though we can’t see the progress of
this in real time, we can note how the underlying dynamics are
changing dramatically. To find out what’s to come, be sure to tune
in and hear what Wolf has to say.
Highlights:
-The momentum is draining out and housing stocks are down
-The housing market nationwide is going through a “come to Jesus"
moment because of the mortgage rate
-Layers of buyers are going to be moved out of the market
-We see widespread drops in asking prices and volume is dropping as
well
-This isn’t like watching a crypto chart; we can’t see the progress
in real time, but we can look at the underlying dynamics which are
changing dramatically
-Foreclosures are up, but they’re still near historic record lows.
This is due to home prices spiking—people can sell their home
rather than paying it off
-Formerly, people were using stimulus to catch up on loans
-Many delinquencies were cured last year, and now they’re going
up
-We’re probably going to see somewhat of a return to normal
levels
Useful Links:
Financial Survival Network
Wolf Street