Everything is transitory…
@colbyLsmith – The Fed again raises its main policy rate by 75bps, lifting fed funds to 3.75-4%. “Ongoing increases” will be appropriate to get rates to a “sufficiently restrictive” level, but the future pace will reflect the “cumulative tightening” delivered so far this year and policy lags.
As the Federal Reserve continues to push up interest rates, the air is slowly coming out of the housing bubble. That leads some people to believe CPI will begin to drop because shelter costs are ostensibly falling. But Peter pointed out that just because housing prices are falling doesn’t mean shelter costs are falling.
They killed the supply side with the lockdowns and the war in Ukraine. Now they have to kill the demand for the ever shrinking supply to provide political cover.
It is either a Machiavellian plan for evil or just plain stupidity.
Yield curve is becoming seriously inverted. 10 year treasury yield now falling below the Fed funds rate. What does that tell you about business demand for capital going forward?
Housing costs for upkeep, taxes and utilities are going to continue to soar. A falling house price makes it even harder to liquidate your asset and still pay bills or mortgages in arrears if it came down to that.
Blackrock or Gates will buy your house
You left out interest, if you haven’t converted to a fixed mortgage yet…
If you think Washington isn’t waging war on the working class, check the balance in your retirement accounts in about twenty minutes.
Oh, and they will be raising your taxes to pay the heating bills for a select few that they believe can still be persuaded to vote for Democrat Destruction in 7 days.
https://www.dailywire.com/news/white-house-announces-days-before-midterms-that-biden-admin-will-help-pay-certain-peoples-power-bills
Supply side incentives would do the trick, but that would upset the Jenga block racket that the Democrats have turned the US economy into. They want the current winners and losers to retain their dominant/ subordinate positions forever.
This is the time for American patriots to send the ruling class scum into the outer darkness.