Post #44540 by AlphaWolf on the US Policy board

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Aberration or canary in the coal mine?

Home sales fell to their lowest annual level for March since 2009, dashing hopes for a rebound this year. Sales of previously owned homes plunged 5.9 percent from February to an annualized rate of 4 million units, according to data released Thursday by the National Association of Realtors.

https://finance.yahoo.com/news/home-sales-fall-low...

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People need the "interest rate" to come down.

They don't want to pay the high "interest rate"

So when rates go down, and prices - go up -- they'll strike themselves a bargain.

And their home insurance premium will be based on the higher purchase price, not the lower one.

But their "interest rate" will be better.

And as an aside, housing prices got a bit ahead of themselves for awhile there - -there's that too and finally, pope not in Club 401K Ville -- including some in Clubv 401K Ville ---are strapped for cash.

All of this plus "interest rate" savvy ---leads you to this. For now.

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Aberration or canary in the coal mine?

Feature, not a bug. One of the major reasons the fed raises the discount rate is to drive up things like mortgage interest rates...which means that the housing industry bears the brunt of a lot of federal monetary policy.

I'm surprised it took this long, honestly.

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