Here it comes. The bubble is about to burst.

Gomez Adams

Grammar Fascist
Staff member
Dec 1, 2020
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Suwanee, Georgia
exposingwot.com
Here you go:


Here's the relevant stuff:
  • The average rate on the 30-year fixed mortgage hit 3.33% last week and is now about half a percentage point higher than a year ago.
  • Applications to refinance a home loan fell 2% last week compared with two weeks ago and were 40% lower year over year.
  • Applications for mortgages to purchase homes fell 4% from two weeks earlier and were 12% lower year over year
Now then, why would rates be going up when the Fed hasn't raised rates at all?

Because those loans already made aren't being paid off. They're losing money so they raise interest rates to offset their loses.

They're "saying" that the raise in rates is dropping demand. I don't think that is the case now any more than it was back in 2008. It's that the buying streak is over. They're out of buyers now and most of those buyers weren't "REAL" buyers. They were investment groups.

They've been going around buying up houses in bulk, driving the prices up. They've also paid ridiculous amounts for these houses - two to three times their value - thinking once again that their value will only increase.

And now they're all stuck holding on to all these houses they can't sell while the people that overextended themselves and bought houses are running out of cash to pay the bills with.

Just.

Like.

Before.

It's a ticking time bomb that could go off any time now. I'm guessing they'll prop it up another year at least, but it's unsustainable in the long run.
 
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And of course the Biden gang is all over the internet and the TV bragging about how much better the jobs report is than was expected. 800,000 jobs "created".

669,000 of them in the services industry. :rolleyes: