The Federal Reserve’s efforts to weaken the labor market could have serious implications for the housing sector, as dwindling savings and potential job losses create a looming threat of rising foreclosures, amplifying the fragility of the housing market.
If the Fed "succeeds" in weakening the labor market, it will impact housing.
With excess savings depleted, a spike in unemployment almost guarantees a spike in foreclosures.
We have a fragile housing market.
Follow us @KobeissiLetter for real time analysis as this develops.
— The Kobeissi Letter (@KobeissiLetter) November 5, 2023
Remember when the Fed started cutting interest rates in 2007 and it saved the housing market?
Me neither LOL pic.twitter.com/ICrEbbvizP
— Darth Powell 🦈🇺🇲🇺🇦🇵🇱🇫🇮 (@GRomePow) November 6, 2023