FED's SHOCKING Move: US Housing Market is On Fire.

FED's SHOCKING Move: US Housing Market is On Fire.

The current state of the US housing market is not good. It may have a devastating potential impact on the American people. According to reports from the Dallas Fed, we are currently in a housing bubble, with a predicted 19.5% market crash looming. The Atlanta Fed's affordability chart also indicates that the housing market is currently at its least affordable level since the 2008 peak.

The article also highlights the struggles faced by REITs such as Blackstone, with $3.9 billion of redemption requests and only $1.4 billion fulfilled, along with banks experiencing a 6% drop in profits in 2022. These issues have caused concern among banks who are anticipating that Americans may fall behind on their mortgages and loans in 2023.

The rise in car loan defaults, which have surpassed levels seen during the peak of the Great Recession in 2009. This has led to questions about the potential impact on homeownership, with many Americans potentially defaulting on car loans before mortgage payments.

The Dallas Fed report attributes the current housing bubble to a fear of missing out (FOMO) among buyers, leading to inflated prices and a disconnect from fundamental real estate principles.

The recent increase in the 10-year treasury has caused Mortgage interest rates to rise, contrary to earlier predictions. Jerome Powell's recent testimony before the Senate banking committee opened the possibility of more aggressive rate hikes to combat inflation.

Boise Idaho and Twin Falls Idaho affordability is at all-time lows. Check out the links below.

Are you wondering about the current state of the housing market? Are you concerned about the potential for a market crash, or wondering if home prices will ever come down? Are you trying to understand why rent is so expensive? We aim to provide answers to these and other questions about the housing market in our weekly content.

If you're looking to buy or sell real estate in Idaho, be sure to follow our updates.

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Good News Realty Group LLC, located in Boise Idaho.

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