A witches’ brew of economic forces is stirring unnerving thoughts about what’s next for California’s homebuying market.That’s largely due to a scary reversal of mortgage rates, which have risen to 23-year highs, less than three years since we saw record lows.Forecasting California’s homebuying future requires a peek into a spine-chilling concoction of market forces that may not mix well.
Remember, housing’s history is filled with painful memories of the Great Recession and the very gloomy days of the early 1990s.The scariest thing about the Federal Reserve has been its resolve to fight the worst bout of inflation in 40 years.to cool the overheated economy has iced homebuying. Spooky stat: A borrower’s buying power has shrunk by 45% from its peak when mortgage rates fell to 2.65% in January 2021.It’s frightening to see the pullback in mortgage-making.
A Connecticut city’s homeless encampment installed tiny houses. The city promptly sent a cease and desist letter.