Danger Will Robinson! Danger! Median sales price of homes in the US sank by -7.4% in Q2 2023.
This is particulary dangerous since it was the worst correction in home prices since two rather nasty recessions of 1970 and 2008 (The Great Recession and financial crisis). This correction occured as M2 Money growth (green line) went negative.
With Fed rate hikes, debt to income ratios are the highest in history.
Mortgage rates are above 7% under Biden and Powell (not Baden-Powell, the founder of the Boy Scouts).
But not only are mortgage rates above 7%, but the mortgage credit box is tightening.
Mortgage rates above 7% and a tightening mortgage credit box = heartaches on heartaches for America’s middle class and low wage workers.
Danger Jay Powell! Danger!!
