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Fitch Ratings: U.S. home prices could soon fall 10% to 15%

 

Across the nation, spiked mortgage rates are translating into fewer homebuyers. On a year-over-year basis, existing home sales and mortgage purchase applications are down 15% and 18%, respectively. While single-family housing starts in July were 19% below levels hit a year ago.

 

The Federal Reserve has made it clear this housing slump is by design. In order to tame runaway inflation, the central bank had to put a stop to the booming housing market. That said, industry insiders aren't exactly sure what the slowdown will mean for home prices. Some firms think home prices will continue rising, albeit, at a decelerated pace. Others predict home prices will soon fall.

 

The fact Fitch Ratings even considers a 10% to 15% home price decline a possibility is alarming. If home prices actually fell 10% to 15% nationally, that would likely translate into 20% to 30% declines in some regional housing markets.

 

https://fortune.com/2022/08/17/home-price-decline-prediction-fitch-ratings-housing-market/

 

 

 

Liz Cheney tho!!!  

 

January 6th!!!

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Federal Reserve: Get ready for "uncomfortably high" inflation for a while

 

0c493e43-ad6c-4fcf-b07d-f65b687e9494-860

 

And uncomfortably high interest rates, too. CNBC’s team called the Federal Reserve’s July minutes “confusing” after their release late yesterday, but the overall message looks clear enough. The Fed still sees inflation as the greatest threat to the economy, and it doesn’t see any signs of significant denting in inflation yet — not from policy, and not from its previous rate hikes.

 

The Financial Times also didn’t have too much trouble sussing out a message from the Fed’s minutes, either. The Fed expects inflation to continue at significantly high levels for some time, and also noted that their previous rate hikes have not had much of an impact yet on its trajectory. It’s become enough of a problem, FT notes, that the Fed now thinks that it will have to keep rates higher and longer to seriously dent inflation:

 

https://hotair.com/ed-morrissey/2022/08/18/fed-get-ready-for-uncomfortably-high-inflation-for-a-while-n490602

 

https://www.ft.com/content/8881b6d4-76e6-46cd-9ebe-efaeffeddb98?segmentId=b385c2ad-87ed-d8ff-aaec-0f8435cd42d9

 

 

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On 8/17/2022 at 10:38 AM, ALF said:

Biden approves largest oil, gas lease sale in US history, steamrolls eco review with inflation bill
The Inflation Reduction Act reinstates Lease Sale 257, an oil and gas sale spanning 80.8 million acres across the Gulf of Mexico

While the Inflation Reduction Act includes several green energy provisions opposed by the fossil fuel industry, the bill also orders the Department of the Interior (DOI) to take a series of steps to boost fossil fuel production on federal lands and waters.

 

The legislation specifically requires the DOI to reinstate Lease Sale 257, a massive offshore oil and gas sale spanning 80.8 million acres across the Gulf of Mexico, within 30 days of enactment.

 

https://www.foxbusiness.com/politics/biden-approves-largest-oil-gas-lease-sale-us-history-steamrolls-eco-review-inflation-bill

That but actually could help inflation… why didn’t this come up in any of the recaps of the legislation??? 😂 

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WHO YOU GONNA BELIEVE, JOE OR YOUR OWN LYIN’ WALLET? 

 

Voters Don’t Buy Biden’s Claims on Recession. 

 

“Nearly 70 percent of respondents told Hart Research Associated/Public Opinion Strategies, which conducted the poll for NBC, that the U.S. economy has fallen into a recession. The finding comes after Biden has insisted that the country is not in a recession, which most sources define as two consecutive quarters of GDP drops. The Commerce Department reported last month that the GDP dropped for two consecutive quarters.”

 

https://freebeacon.com/biden-administration/poll-voters-dont-buy-bidens-claims-on-recession/

 

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On 8/17/2022 at 11:20 AM, Big Blitz said:

Fitch Ratings: U.S. home prices could soon fall 10% to 15%

 

Across the nation, spiked mortgage rates are translating into fewer homebuyers. On a year-over-year basis, existing home sales and mortgage purchase applications are down 15% and 18%, respectively. While single-family housing starts in July were 19% below levels hit a year ago.

 

The Federal Reserve has made it clear this housing slump is by design. In order to tame runaway inflation, the central bank had to put a stop to the booming housing market. That said, industry insiders aren't exactly sure what the slowdown will mean for home prices. Some firms think home prices will continue rising, albeit, at a decelerated pace. Others predict home prices will soon fall.

 

The fact Fitch Ratings even considers a 10% to 15% home price decline a possibility is alarming. If home prices actually fell 10% to 15% nationally, that would likely translate into 20% to 30% declines in some regional housing markets.

 

https://fortune.com/2022/08/17/home-price-decline-prediction-fitch-ratings-housing-market/

 

 

 

Liz Cheney tho!!!  

 

January 6th!!!

 

Well, I don't own a home but I'm finally getting close to buying one. So this is great news for me and everyone else that wants to stop setting their money on fire via rent.

 

And if this bothers people, they should have sold during the years of record home prices.  Markets go up and markets go down. You waited too long to cash out. Too bad. 

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9 minutes ago, Coffeesforclosers said:

 

Well, I don't own a home but I'm finally getting close to buying one. So this is great news for me and everyone else that wants to stop setting their money on fire via rent.

 

And if this bothers people, they should have sold during the years of record home prices.  Markets go up and markets go down. You waited too long to cash out. Too bad. 

I still feel like there is too large of an imbalance between home seekers and available homes to cause a drop that large. But we will see. 

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On 8/17/2022 at 8:20 AM, Big Blitz said:

Fitch Ratings: U.S. home prices could soon fall 10% to 15%

 

Across the nation, spiked mortgage rates are translating into fewer homebuyers. On a year-over-year basis, existing home sales and mortgage purchase applications are down 15% and 18%, respectively. While single-family housing starts in July were 19% below levels hit a year ago.

 

The Federal Reserve has made it clear this housing slump is by design. In order to tame runaway inflation, the central bank had to put a stop to the booming housing market. That said, industry insiders aren't exactly sure what the slowdown will mean for home prices. Some firms think home prices will continue rising, albeit, at a decelerated pace. Others predict home prices will soon fall.

 

The fact Fitch Ratings even considers a 10% to 15% home price decline a possibility is alarming. If home prices actually fell 10% to 15% nationally, that would likely translate into 20% to 30% declines in some regional housing markets.

 

https://fortune.com/2022/08/17/home-price-decline-prediction-fitch-ratings-housing-market/

 

 

 

Liz Cheney tho!!!  

 

January 6th!!!


I love how people don’t understand math. If you bought a $500k house in January with 10% down and the average rate of 3.2% at the time your PI cost is $1,958. If the home dropped 15% to $425k and you still put 10% down with current rates around 5.6% your PI is $2,195.  Sure your property taxes will be a bit lower but not $3k lower. In order for homes to become affordable with today’s rates prices need to drop a LOT more than 15%.  And they will. Wait for it. 

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2 hours ago, PetermansRedemption said:

I still feel like there is too large of an imbalance between home seekers and available homes to cause a drop that large. But we will see. 

 

I'm more worried about private equity firms sucking up single family homes and turning them into rental properties. I don't want a fat quarterly dividend. I want to own a house. 

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1 hour ago, Coffeesforclosers said:

 

I'm more worried about private equity firms sucking up single family homes and turning them into rental properties. I don't want a fat quarterly dividend. I want to own a house. 


Nah that ship has sailed. They’ve made they money in RE and will soon start dumping.  They’re going after small businesses.  Private equity is smart. 

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1 hour ago, Coffeesforclosers said:

 

I'm more worried about private equity firms sucking up single family homes and turning them into rental properties. I don't want a fat quarterly dividend. I want to own a house. 


thats one thing I wish the government would step in and handle. Homeownership is such an important part of the economy and we need more owners and those equity firms out of single family homes. 

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