WS #16173
The US housing market has entered a deep freeze, with pending home sales dropping 7.3% month-over-month and 11.3% year-over-year to their lowest level in a quarter-century. This collapse is directly attributed to the 30-year mortgage rate crossing the 7% psychological barrier, which has effectively priced out buyers and caused builder sentiment to hit a 14-year low. This data point is critical as it suggests that despite the equity rally, the broader US economy is facing significant headwinds from high borrowing costs, potentially forcing the Federal Reserve to reconsider its rate trajectory.
US Housing Market Collapse
The US housing market has entered a deep freeze, with pending home sales dropping 7.3% month-over-month and 11.3% year-over-year to their lowest level in a quarter-century. This collapse is directly attributed to the 30-year mortgage rate crossing the 7% psychological barrier, which has effectively priced out buyers and caused builder sentiment to hit a 14-year low. This data point is critical as it suggests that despite the equity rally, the broader US economy is facing significant headwinds from high borrowing costs, potentially forcing the Federal Reserve to reconsider its rate trajectory.