WSJ Predicts Home Sales Doomsday Again?

WSJ says rising rates are battering mortgage lenders while new home sales posted biggest drop in 9 years. When did we hear that kind of financial crap before? Anyone remember paper’s lead up to 2008 collapse?

Well, the sudden drying up mortgage applications after the FED finally started to raise interest rates to fight runaway inflation could have been predicted by Whoopi Goldberg playing the soothsayer in “Ghost”. But, perhaps a more worrisome reminder of reality was the fact that LAST MONTH, even BEFORE the Fed rate hike newly built home “sales fell 16.6%.” The WSJ blames “higher interest rates” for the reduced buyer demand, but the crashing sales, again, began BEFORE the Fed rate hike in early May.

Ok. Mortgage rates were already going up in April, partly in anticipation of the expected Fed hikes (with promises of 7 more to come). But, if the real estate market is already THAT sensitive and reactive to a mere .50% rate hike, what do you think is going to happen next month and the months thereafter when the Fed follows through with its promised additional rate hikes?

Davd Soul