Biden’s economy is imploding. Inflation is at all-time highs and now the housing market is in jeopardy as rates are climbing to recession level highs.
The Conservative Treehouse writes:
A negative GDP outcome is quite possible, perhaps likely, when the first quarter GDP figures are released on the last Friday of this month. The most recent sales and economic data shows that U.S. consumers are prioritizing spending and high priced durable good sales are negative.
Now, Fannie Mae is delivering a rather stunning shift in their economic forecast. In addition to projecting a recession for 2023, these revised home purchase figures are remarkable:
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...”We have downgraded our total home sales forecast for 2022 to a decline of 7.4 percent (previously a 4.1 percent decline) followed by a decrease of 9.7 percent in 2023 (previously a 2.7 percent decline).” (link)
That is a very significant change in home sales forecast to the negative position.
Driving this news may be the fact that interest rates are on the rise. We are now seeing some of the highest rates in years. This will only slow down sales and impact those with adjustable-rate mortgages who may be unable to pay their mortgages moving forward with increased rates.
The St Louis FRED shows rates currently at 5%, much higher than any rate in a decade. We haven’t seen this 5% since 2009, during the Obama recession.
The problem is also that these rates are screaming upwards and maybe at 6.875% but the FRED hasn’t yet caught up. This is another bad indicator for the Biden economy.