where's the lube
There is mass reeming on the horizon ....and its going to sting ......i think some financial dry humping is looming for you loonies ......... who thought you could over extend and borrow ...owning and being one paycheck for the dumpster ...........watch and see the fools who thought that houses were all going to make them all millionaires .......right ........ said the man sitting at the big shiny desk in the gold glasses ..........this is what they do ....the fuck the lower ring who get blinded by financial stupidity .........it's a game .....it's a game only for the satanical greedy big boys .......the minnows cannot swim in this pool ......its full of sharks .....financial sharks .....great white sharks in shiny suits ....with yachts and money ........
Housing, which is a key segment of the national economy, looks extraordinarily weak right now, according to a recent report by the National Association of Home Builders (NAHB).
“We’re heading into a recession,” NAHB CEO Jerry Howard told Bloomberg in a recent interview. He described how a rapid decline in homebuilding and demand for new homes could drag the national economy lower.
Here are some of the highlights of Howard’s thesis.
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Housing leads every recession since Second World War
Residential real estate is an integral part of the American economy. In fact, housing activity contributes between 15% to 18% of gross domestic product (GDP) every year, according to the NAHB. A slowdown in this sector naturally pulls down the rest of the economy.
A decline in home building and buying has led to every recession since the end of the Second World War, according to Howard. The association’s latest report indicates that buyers and builders are both pulling back from the market yet again, which could be a leading indicator for another recession on the horizon in 2022.
Builders are holding off
Homebuilders face multiple demand- and supply-side pressures.
On the demand front, potential homebuyers have receded from the market. Existing home sales slid 5.4% in June. Meanwhile, borrowing capacity has been curtailed by rising interest rates. The average mortgage rate has accelerated at the fastest pace in 35 years. A 15-year fixed rate mortgage is now about 4.8%, up from 2.2% a year ago. These factors have effectively destroyed demand.
Meanwhile, the supply chain for home building material and the cost of labor continues to increase the cost of building new homes. This is why homebuilders' sentiment dropped 12 points in June, according to the NAHB survey.