Housing market becomes 'major headwind' for US economy

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The U.S. housing market is starting to cool off considerably as the Federal Reserve raises interest rates at the fastest pace in decades in order to cool inflation.

Economic experts Patrice Lee Onwuka and Larry McDonald react to consumers saying inflation is impacting their standard of living on 'Making Money.'A slew of new economic data published this week shows the sector is starting to cool off: Homebuilders' sentiment about the industry plunged to the lowest level in two years, and buyers are retreating from the market as they cancel home sales at the fastest pace since 2020 and builders are rethinking construction.

Painfully high inflation and rising borrowing costs have proven to be a lethal combination for the housing market, forcing potential buyers to pull back on spending. The number of home sale cancellations soared in July to another two-year high as buyers retreated from the market. About 63,000 home purchase agreements were called off in July, equal to 16% of homes that went into contract that month, according to a new analysis by Redfin published on Tuesday.

On top of that, sentiment among builders in the housing market tumbled in August to the lowest since the beginning of the COVID-19 pandemic. Any reading above 50 is considered positive; the gauge has not entered negative territory since a brief – but steep – drop in May 2020.

 

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Tanking so BlackRock and Blackstone can buy housing. Bad for younger generations!!

What goes up missy come down

The WORST is yet to come under this failed administration.

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