Rising Delinquencies and Repos - Wolf Richter #5564

Summary: Has the housing bubble popped? Is it in the process of popping right now? Here to give us the latest news on this is Wolf Richter. The housing market is going through a major shift as stocks decline and mortgage rates go up. Even though we can’t see the progress of this in real time, we can note how the underlying dynamics are changing dramatically. To find out what’s to come, be sure to tune in and hear what Wolf has to say. Highlights: -The momentum is draining out and housing stocks are down -The housing market nationwide is going through a “come to Jesus" moment because of the mortgage rate -Layers of buyers are going to be moved out of the market -We see widespread drops in asking prices and volume is dropping as well -This isn’t like watching a crypto chart; we can’t see the progress in real time, but we can look at the underlying dynamics which are changing dramatically -Foreclosures are up, but they’re still near historic record lows. This is due to home prices spiking—people can sell their home rather than paying it off -Formerly, people were using stimulus to catch up on loans -Many delinquencies were cured last year, and now they’re going up -We’re probably going to see somewhat of a return to normal levels Useful Links: Financial Survival Network Wolf Street