US Housing Prices Are High
Monthly sales of existing homes in the US show they are selling at an annualized pace barely above 3 million. Barring one bad month in the aftermath of the Global Financial Crisis, this is the worst figure in 27 years
Worse is to come. As might be expected when 30-year fixed mortgage rates have just topped 8% for the first time since 2000
Prices have continued to rise even as transactions have tanked.
The protracted period of zero interest rates in 2020 and 2021 allowed many homeowners to lock in very low borrowing costs
There are reasons for optimism despite the obvious similarities to the Global Financial Crisis GFC.
John Authers Bloomberg 23 October 2023
Just 1.13 million homes on the market last month
Price chart
https://englundmacro.blogspot.com/2023/10/no-opening-21-22-october-2023.html
US homeowners now pay around 7 percent on their new 30-year mortgages
Many have loans far less cheaper. Good for them.
On the other hand, as economists like to say, if inflation returns to 2 percent, the real rate on new loans will be 5 percent for many years.
Röd öppning - Red Opening 23 October 2023
https://englundmacro.blogspot.com/2023/10/rod-oppning-red-opening-23-october-2023.html
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