High mortgage rates, supply chain issues and labor shortages, all of which are leading home builders and mortgage brokers to say we have entered a recession. What does it all mean?
According to New Trader U, this doesn’t mean that we could see the same type of housing crash as 2008 as this is a very different environment this time. There is not the same level of no income, no job (NINJA) loans being given out this time. Also there is not a big oversupply of houses in 2022. However, the signs of a drop in sales, construction, prices, and sentiment show an obvious top in the housing market and a decline in the industry.
Consumer sentiment toward housing fell to the lowest levels seen since late 2011, as measured by the Fannie Mae Home Purchase Sentiment Index (HPSI). The index dropped 2.0 points to 62.8 and is 13.0 points lower than the same time last year.