So the I guess the Fed needs to start thinking about cutting rates right? No one can afford monthly payments because rates are too high right? But they are as low practically as they have ever been you say? Uh oh, what does that mean?
Could it be that people are not willing to extend themselves for fear of another downturn? Could it mean that the corporations which were buying up houses out west are having a harder time than they thought as landlords? Could it be that the economy is very shaky generally even though the stock market keeps pushing upward to new highs? Could it be that people are learning to live in the houses they have? Could it mean that fewer companies are transferring workers?
It could be any of these things or all of these things. (Plus a few others.)
To be fair it’s only a one month blip down but it was a significant miss. “Economists” were expecting a .5% rise. What they got was a 1.1% decline in housing sales.
One month does not make a trend but It reflects what I’ve been seeing in the 90 mile stretch between here and Washington DC. Things have slowed. The “for sale” signs are becoming more numerous. The optimism in housing which flashed a year and a half ago is gone.
It’s not wholesale negativity like it was at the height of the Great Recession by any means but this number could be a tremor.