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 ........




‘We’re heading into a housing recession’: Here’s what the NAHB CEO sees in real estate right now — and why it spells trouble for the economy

‘We’re heading into a housing recession’: Here’s what the NAHB CEO sees in real estate right now — and why it spells trouble for the economy
‘We’re heading into a housing recession’: Here’s what the NAHB CEO sees in real estate right now — and why it spells trouble for the economy

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.


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