Macro Trends Advisors founding partner Mitch Roschelle argues the housing market is slowing down ‘dramatically.’
The highest mortgage rates in decades have made it one of the worst times in a generation for U.S. consumers to buy a new home.
About four in five consumers describe buying conditions for homes as bad in November, according to the University of Michigan's consumer sentiment survey, which dates back to 1978. The growing concern over the housing market reflects buyer concerns about higher interest rates as the Fed wages the most aggressive war against inflation since the 1970s.
Painfully high inflation and rising borrowing costs have already proven to be a lethal combination for the housing market, forcing potential buyers to pull back on spending.
A confluence of data released this month shows that the housing market is rapidly deteriorating: Sales of existing homes tumbled in October for the ninth straight month; homebuilder sentiment fell to the lowest level since 2012 in November; and investor home purchases plunged 30%.
HOME PRICES COULD PLUNGE 20% AMID RISKS OF 'SEVERE' CORRECTION, DALLAS FED SAYS