• Latest
  • Trending
  • All
  • News
  • Business
  • Lifestyle
Experts Sound Recession Alarm Bells As Housing Numbers Tumble Further Than Expected

Experts Sound Recession Alarm Bells As Housing Numbers Tumble Further Than Expected

August 16, 2022
EXCLUSIVE: House GOP Whip Says Colorado Terror Attack ‘Direct Result’ Of Democrats’ Open-Borders Agenda

EXCLUSIVE: House GOP Whip Says Colorado Terror Attack ‘Direct Result’ Of Democrats’ Open-Borders Agenda

June 2, 2025
EXCLUSIVE: Harvard Commencement Speaker Worked For Org Tied To China’s Military

EXCLUSIVE: Harvard Commencement Speaker Worked For Org Tied To China’s Military

June 2, 2025
US Will Reportedly Let Iran Enrich Uranium In Major Nuclear Deal Concession

US Will Reportedly Let Iran Enrich Uranium In Major Nuclear Deal Concession

June 2, 2025
Supreme Court Will Not Hear 2nd Amendment Challenges 

Supreme Court Will Not Hear 2nd Amendment Challenges 

June 2, 2025
‘It’s A Good Start’: Trump’s NIH Takes Step To Hold Risky Research Labs Accountable

‘It’s A Good Start’: Trump’s NIH Takes Step To Hold Risky Research Labs Accountable

June 2, 2025
Andrew Cuomo’s Campaign Attorney Targets Union That Made A List Of ‘Top Ten Reasons’ Not To Vote For Him

Andrew Cuomo’s Campaign Attorney Targets Union That Made A List Of ‘Top Ten Reasons’ Not To Vote For Him

June 2, 2025
‘Habitual Lawbreakers’: ICE Rolls Up Hundreds Of Illegal Migrant Criminals In Sprawling Blue State Operation

‘Habitual Lawbreakers’: ICE Rolls Up Hundreds Of Illegal Migrant Criminals In Sprawling Blue State Operation

June 2, 2025
NEWT GINGRICH: Do We Really Want Waste And Fraud In Medicaid?

NEWT GINGRICH: Do We Really Want Waste And Fraud In Medicaid?

June 2, 2025
Egg Prices Have Dropped 61% Since Trump Took Office

Egg Prices Have Dropped 61% Since Trump Took Office

June 2, 2025
‘Reckless’: Mike Huckabee Slams Media For Pushing Hamas ‘Propaganda’ Hours Before Colorado Terror Attack

‘Reckless’: Mike Huckabee Slams Media For Pushing Hamas ‘Propaganda’ Hours Before Colorado Terror Attack

June 2, 2025
Fed Offers Up Prediction That Spells Good News For Trump’s Economy

Fed Offers Up Prediction That Spells Good News For Trump’s Economy

June 2, 2025
Climate Activist Greta Thunberg Sets Sail for Gaza

Climate Activist Greta Thunberg Sets Sail for Gaza

June 2, 2025
  • Donald Trump
  • State of the Union
  • Elon Musk
  • Tariffs
  • Congress
  • Faith
  • Immigration
Monday, June 2, 2025
  • Login
IJR
  • Politics
  • US News
  • Commentary
  • World News
  • Faith
  • Latest Polls
No Result
View All Result
IJR
No Result
View All Result
Home News

Experts Sound Recession Alarm Bells As Housing Numbers Tumble Further Than Expected

by Western Journal
August 16, 2022 at 3:50 pm
in News
242 10
0
Experts Sound Recession Alarm Bells As Housing Numbers Tumble Further Than Expected

A vehicle drives through a residential neighborhood in Los Angeles, California on August 16, 2022. - The US housing market is declining amid higher interest rates with fewer starts and more cancelled deals. (Photo by Frederic J. BROWN / AFP) (Photo by FREDERIC J. BROWN/AFP via Getty Images)

491
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter

After years of a booming housing market, the industry is now hitting a new snag and could fall into recession.

In July, the number of housing starts took a significant downturn, which could be a sign that the market is in trouble, the Washington Examiner reported.

Housing starts measure the annualized change in the number of new residential buildings and homes that began construction.

Last month, the number of housing starts fell by 9.6 percent. That puts the annualized rate at 1.45 million, a report from the Commerce Department outlined, according to the Examiner.

Even permits to build new housing slowed down by 1.3 percent in July, the Examiner reported.

On top of the declining housing starts, the National Association of Homebuilders/Wells Fargo housing market index fell for the eight month in a row, Fox News reported.

These indexes measure the “pulse of the single-family housing market,” so as they have fallen, it indicates a serious lack of confidence in the housing and home building markets.

Fox News reported that the index fell to 49, which marks the worst stretch for the housing market since the infamous 2008 housing collapse.

Would you try to buy a home in this market?

Completing this poll entitles you to our news updates free of charge. You may opt out at anytime. You also agree to our Privacy Policy and Terms of Use.
Yes: 0% (0 Votes)
No: 100% (3 Votes)

This index fall is especially shocking when compared to where it stood just a year ago, at 80.

In November of 2020, the index actually hit a 35-year-high of 90 when the interest rates were at record lows.

But now, with soaring inflation, the Federal Reserve has tightened its monetary policy and hiked interest rates in an attempt to curb the inflation crisis.

This has naturally played out in the housing market, and now home building and buying is seeing the downturn.

“Net, net, housing permits have been shrinking every month since the first Fed rate hike in March this year as home builders know what’s-what and which way the winds are blowing,” said Chris Rupkey, the chief economist at FWDBONDS, according to the Examiner.

“Recession has come to the residential construction markets right on schedule as interest-rate sensitive housing is the first sector to turn down when soaring mortgage rates make it more costly for home buyers,” Rupkey added.

“Tighter monetary policy from the Federal Reserve and persistently elevated construction costs have brought on a housing recession,” NAHB chief economist Robert Dietz said, Fox News reported.

Taking all this into account means that buyers are facing the big hurdle of affordability now, Dietz also said, CNBC reported.

But the direction that takes will largely determine the future of the housing market, so buyers and economists are closely watching.

“The total volume of single-family starts will post a decline in 2022, the first such decrease since 2011. However, as signs grow that the rate of inflation is near peaking, long-term interest rates have stabilized, which will provide some stability for the demand-side of the market in the coming months,” Dietz said.

This article appeared originally on The Western Journal.

Tags: Federal ReservehousingInflationpoliticsrecessionthe economy
Would you try to buy a home in this market?

Completing this poll entitles you to our news updates free of charge. You may opt out at anytime. You also agree to our Privacy Policy and Terms of Use.
Yes: 0% (0 Votes)
No: 100% (3 Votes)
Share196Tweet123
Western Journal

Western Journal

Advertisements

Top Stories June 10th
Top Stories June 7th
Top Stories June 6th
Top Stories June 3rd
Top Stories May 30th
Top Stories May 29th
Top Stories May 24th
Top Stories May 23rd
Top Stories May 21st
Top Stories May 17th

Join Over 6M Subscribers

We’re organizing an online community to elevate trusted voices on all sides so that you can be fully informed.





IJR

    Copyright © 2024 IJR

Trusted Voices On All Sides

  • About Us
  • GDPR Privacy Policy
  • Terms of Service
  • Editorial Standards & Corrections Policy
  • Subscribe to IJR

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Politics
  • US News
  • Commentary
  • World News
  • Faith
  • Latest Polls

    Copyright © 2024 IJR

Top Stories June 10th Top Stories June 7th Top Stories June 6th Top Stories June 3rd Top Stories May 30th Top Stories May 29th Top Stories May 24th Top Stories May 23rd Top Stories May 21st Top Stories May 17th