Mortgage Applications at 22-Year Low
"The MBA Mortgage Market Index in the United States decreased 6.5% to 288.40 points in the week ended June 3rd 2022. It is the lowest level in 22 years as applications to refinance a home dropped 5.6% and those to purchase a single family home went down 7.1%."
Homes for Sale Climbing
Sellers Losing Control
21% of Sellers Dropping Prices
New Home Sales Plunge 22.5% In April, 16.6%
New home sales have peaked this cycle and the bottom is nowhere in sight.
For discussion, please see New Home Sales Plunge 22.5% In April, 16.6% From Deep Negative Revisions
But What About Rent?
Home prices are not directly in the CPI, Rent is. If we are building fewer houses then there is less downward pressure on rent prices.
HUD Analysis
"I'm in the HUD-insured multifamily industry. New construction projects that were in the pipeline don't work anymore, b/c of material costs, labor shortages, and financing interest rates. Rents will only climb more."
New Homes For Sale Is a Poor Measure of Supply, What's the Real Supply?
The only possible savings grace for the Fed is New Homes For Sale Is a Poor Measure of Supply.
https://mishtalk.com/economics/sellers-have-lost-control-of-the-housing-market-but-what-about-rent
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