(Bloomberg) — The Federal Reserve suggested on Friday that lofty home prices could be susceptible to steep declines after big run-ups in recent years on the back of ultra-low interest rates. “With valuations at high levels, house prices could be particularly sensitive to shocks,” the Fed said in its semiannual Financial Stability Report released Friday. […]
Read MoreFILE – This is a home in Mount Lebanon, Pa., under contract, Oct. 17, 2022. Sales of previously occupied U.S. homes fell in September for the eighth month in a row, though the decline was the most modest yet since the housing market began to cool amid sharply higher mortgage rates. (AP Photo/Gene J. Puskar, […]
Read More(Bloomberg) — The US housing market took a turn in July. A national measure of prices rose 15.8% year-over-year, the S&P CoreLogic Case-Shiller index showed Tuesday. That was the smallest gain since April 2021, and the slowdown from the 18.1% jump in June was the largest deceleration in the history of the index, according to […]
Read More(Bloomberg) — John Paulson became a billionaire after his hedge fund effectively shorted more than $25 billion of mortgage securities at the dawn of the global financial crisis. Most Read from Bloomberg As he sizes up yet another frothy housing market some 15 years later, the founder of Paulson & Co. says another downturn in […]
Read More(Bloomberg) — Federal Reserve Chair Jerome Powell warned that the US housing market is likely to suffer a reversal in the wake of policy makers’ interest-rate hikes. “We’ve had a time of a red-hot housing market all over the country,” Powell said in a press conference after the Fed’s policy decision on Wednesday, in which […]
Read More(Bloomberg) — The US mortgage industry is seeing its first lenders go out of business after a sudden spike in lending rates, and the wave of failures that’s coming could be the worst since the housing bubble burst about 15 years ago. There’s no systemic meltdown coming this time around, because there hasn’t been the […]
Read More(Bloomberg) — US house prices are likely to fall as mortgage rates exceeding 6% crimp affordability for the average buyer, according to Capital Economics. Property prices could contract an annual 5% by the middle of next year, Matthew Pointon, senior property economist, said in a research note Monday. He’d previously projected no change in values […]
Read More(Bloomberg) — Mark Spitznagel is paid to be prepared for when the market’s weakest links are exposed in a big way. Right now, the Universa Investments founder, whose fund aims to protect clients during black swan events, says the financial system is most vulnerable to “the greatest credit bubble of human history.” “If this credit […]
Read More(Bloomberg) — Canadian home prices fell for the first time in two years as a rapid rise in interest rates looks set to threaten one of the world’s hottest housing markets. Benchmark home prices declined 0.6% in April from the month before, the first drop since April 2020, according to data released Monday from the […]
Read More(Bloomberg) — Bond manager Mark Kiesel sold his California home in 2006, when he presciently predicted the housing bubble would pop. He bought again in 2012, after U.S. prices fell more than 30% and found a floor. Now, after a record surge in prices, Kiesel says the time to sell is once again at hand. […]
Read MoreU.S. home prices roared almost 20% higher in the past year, giving families who own properties a major boost to their finances during the pandemic. But Wall Street, a key source of home mortgage finance, sees important questions ahead for the red-hot housing market, now that the Federal Reserve has shifted its focus to tackle […]
Read MoreUnlike the stock market where people understand and accept the risk that prices may fall from time to time—sometimes severely—many people who buy a house do not really think that the value of their home will ever decrease by all that much. Indeed, historically, the housing market has not been affected by price bubbles when […]
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