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The U.S. Housing Market Could Be Crushed as Home Flipping Returns

Opendoor decides to restart. Housing demand in the U.S. has tanked, and credit has tightened. Job losses add to the uncertainty surrounding the market. As millions of Americans continue to file for unemployment benefits due to the lockdown, the housing market has started feeling the heat. Home sales have started heading south in good measure, but…

Why the Housing Market Will Defy This Spooky Great Recession Echo

In a spooky financial crisis echo, the gap between mortgage rates and Treasury bond yields is at its widest mark since 2009. Mortgage rates are low, but they should be even lower by historical standards. Here’s why the housing market will continue to recover anyway. Treasury bond yields and mortgage rates typically move in tandem,…

Housing Market Checks 4 Out of 4 Boxes That Caused The 2008 Crisis

The U.S. housing market is vulnerable today in all the same ways it was leading up to the 2008 financial crisis. It checks all four of the boxes that led to the housing bubble in the January 2011 Financial Crisis Inquiry report. Add to that the extreme economic stresses of the coronavirus pandemic and drastic…

Why Stock Market Bulls Are Cheering the Worst ‘Economic Surprise’ Data Since 2008

Citigroup’s Economic Surprise Index is plumbing its worst lows since the financial crisis. History suggests this could be a bullish sign for the stock market. But Wall Street’s bears argue that this time will be different. Wall Street bears have pooh-poohed the stock market’s month-long rally by arguing that a deluge of horrific economic data…

The Housing Market Is Edging Dangerously Close to a $1 Trillion Reckoning

The housing market is teetering like a house of cards. Loan forbearances now represent nearly $1 trillion in unpaid principal. Short of a miraculous economic recovery, a wave of defaults is next. The federal bailout of the housing market ballooned by a stunning margin in the last week. According to mortgage data company Black Knight,…

Why the U.S. Housing Market Will Survive the Ugly Home Sales Plunge

New home sales plunged 9.5% from a year ago to 627,000 in March as buyers and sellers pulled back from the housing market. April should be even worse. Here’s why there is still hope for the housing market. The COVID-19 pandemic is pummeling nearly every sector of the U.S. economy, including the housing market. With…

New Housing Market Data Is Bad News for Bargain-Hunting Millennials

FHFA data show that house price growth remains strong in the United States. That’s excellent news for the housing market. But not for the Millennials hoping that a severe price downturn would make homeownership more affordable. Millennials hoping that the coronavirus pandemic would ignite a housing market crash and streamline their path to homeownership got…

Stock Market Relief Rally Is About To Crash, Warns Prescient Hedge Fund

The stock market has charted a stunning relief rally. But one of the best-performing hedge funds warned in a letter to investors that the rally has topped out. And the bear market has no end in sight. In the short term, quarter one corporate earnings will take the wind out of the rally. In the…