Michaël van de Poppe - 27 September 2022
The current status of the housing market displayed in graph!
It´s a new week, which means we give an overview of what is happening in the world (economically!)
Current status of the housing market
It should come as no surprise to you at the moment that we are at an economic low. Indeed, to get out of a low you must first move toward rock bottom, and we are moving towards that at a fierce rate. This is scary, and it comes with some scary charts. Here are some examples:
Starting with special attention to the housing market, in which we see sales plundering, mortgage applications declining, supply of new homes extremely increasing, and 30-year mortgages up 90% YoY. This is well shown in the chart below, with the collapsing homebuilder sentiment and where interest rates are moving.
Also, saving rates are collapsing. This shows that households have been feasting on savings, but which are now virtually depleted..
The housing market is one of the largest financial asset classes, therefore it needs more time to go from bullish to bearish than the Cryptocurrency market needs. Therefore, the housing market can be seen as a good status reflection of the economy. Remember the distinction we always make between the economy and the markets. The economy is now, the markets are the future.
In our Trade Letter we discuss multiple markets and explain their graphs extensively, just like the housing market.
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