That shouldn’t mask the fact that what is happening in the housing market is utterly and horribly bad and that the economy is worse off for it. This past Thursday, the National Association of Realtors said that 3.96 million previously owned, or existing, homes were sold in September at a seasonally adjusted, annual rate. It gets worse: Existing home sales are counted only once they close, as opposed to when they go into contract. With Freddie Mac reporting that mortgage rates averaged 7.63% in the week ended Wednesday, existing home sales seem destined to keep slumping. The conclusion might be that mortgage rates need to go even higher to effectively constrain the economy.

Source: Wall Street Journal October 21, 2023 11:46 UTC