The U.S. housing bubble is popping. Interest rates are up and will not go down soon. Many people who recently signed Adjustable Rate Mortgages will learn that they can not afford their houses. But by then housing markets will be down and foreclosure will come. More offers will further turn down the market prices. Construction workers will lose their jobs. Homebuilders will shut down.
This will get really nasty next year when $1 trillion in ARMs are in for readjustment. Finally the Bush boom party is over.
The National Association of Realtors reported that sales of existing homes and condominiums dropped by 4.1% in July from June to a seasonally adjusted annual rate of 6.33 million – the lowest level since January 2004. Economists were forecasting the pace of sales to fall to 6.55 million.
The fragile housing market….
Resource Investor
Some illustrating headlines:
Housing affordability drops to record low, home builders say
Market Watch
Affordability conundrum: Prices dip, yet homes remain out of reach
Palm Beach Post
Affordable homes still scarce here
Los Angeles Daily News
Luxury housing market sliding
phillyBurbs
Chill cast over KC housing market
The Kansas City Star
It’s a housing market for buyers
Arizon Daily StarDebtors on Borrowed Time
Press of Atlantic City
Homeowners feel pinch of mortgage rate
Washington Times
Study Warns of Homeowner "Rate Shock"
Consumer AffairsStalled housing market clouds Lowe’s outlook
Houston Chronicle
Weak housing-market hurts Toll Brothers’ profit
The Salt Lake Tribune
Dollar May Decline on Speculation of Cooling Housing Market
Bloomberg