US housing market in ‘deep recession’ as homebuilder confidence tanks: economist

NYPost ^ | 09/19/2022 | Thomas Barrabi

[ChicagoConservative27]

The US housing market is in the midst of a “deep recession” that could put pressure on the Federal Reserve to ease up on interest rate hikes, a prominent economist warned on Monday.

Homebuilder confidence declined for the ninth straight month in September as surging mortgage rates and steep prices pushed many buyers out of the market, according to the National Association of Home Builders.

Builder confidence fell to its lowest level since 2014 when excluding the early days of the COVID-19 pandemic, the index showed.

The prolonged downturn in confidence shows the housing market has been “in a tailspin for the whole of this year,” according to Pantheon Macroeconomics chief economist Ian Shepherdson.

“Activity tracks mortgage applications with a lag, and the early September numbers are grim, even before the full hit from the rebound in mortgage rates in recent weeks works through,” Shepherdson said in a note to clients on Monday.

[Zathras]

Jimmy Carter II.

[redgolum]

It is happening now.

At least in my area.

A lot of boomers are trying to cash out of huge houses, and can’t find buyers.

So a front company comes in and offers a low ball price, and takes the house off the market. Meanwhile younger Mills and Z’s can’t find apartments that they can afford to rent.