Sales at the Top are strong. Bottom falls out in rest of market. “Rising interest rates and higher home prices depressed housing demand.”
“Recent stock market volatility” catches some of the blame.
So the Fed Gets Ready to Walk Away from the Bond Market, and All Kinds of Stuff Happens.
The boom is over. And there are broader effects.
At the time rate locks were issued for those deals, mortgage rates were still around 3.2%.
Builders have abandoned the market below $300,000.
But wait… Haven’t seen anything yet. Impact of today’s holy-moly mortgage rates won’t show up in the sales data for a couple of months. Here’s why.
But future bond buyers get the higher yields.
Something Has to Give.
If it continues, “we expect to see an even greater cooling of the housing market than previously forecast”: Fannie Mae.