Despite America’s growing population, new home sales are only back to levels seen in 1995 when the Clinton push for homeownership began. It was called “The National Homeownership Strategy: Partners in the American Dream.”
They should have called it “Partners in the American Scream” since the house price bubble burst in spectacular fashion.
After the house price bubble burst starting in Q4 2007, median prices for new homes and existing homes diverged.
But back to today. New home sales in January declined 7.8%.
Well, it was January and the biggest decline was in the Northeast. On the other hand, the biggest region for growth was in the Midwest. Maybe it was Ohio State demolishing Sam Darnold and USC in the Cotton Bowl 24-7.
Two of my GMU students, Belle Matthews and Brent Ferris put together this chart showing how the dearth of sub-620 FICO borrowers is hurting the housing market.
But it could also be the increase in the mortgage rate as The Fed tries to normalize monetary policy.
Fed monetary policy normalization or a Buckeye bowl win over the USC Trojans and likely future Cleveland Brown QB Sam Darnold?