Bringing Down The House

Unfortunately, I must let you know Betty White, Queen Latifah, Steven Martin, and Eugene Levy are not the stars in this article, but the current housing market is. Not too long ago, we were in a euphoric period with record-low interest rates, and now that's all come to a screeching halt. There are no rate cuts from Fed Powell, and the results are beginning to show. Mortgage Loan applications have reached all-time lows we haven't seen in over 25 years, and what will stop this from continuing? Everyday costs of living have done all but decrease, thanks to inflation. Although opinions differ on whether or not the unusually tight housing market will loosen, it is clear that the market has shrunk considerably from its former highs. Present-day real estate is still a seller's market. There is a shortage of available homes, rising mortgage rates, and growing home prices. 

Although buying a home is now more complex than ever, ready buyers still have options. Despite initial fears that the epidemic would cause a home market catastrophe equal to the Great Depression, the market has stayed stable. However, some critical considerations exist, such as growing property prices and potential sales decreases due to supply-demand imbalances. Buying a home isn't reasonable for most at this point. Some of the largest mortgage lenders that can be monitored are Rocket Companies RKT, UWM Holdings Corp UWMC, and Wells Fargo WFC. You'll notice most have lost steam and are starting to fizzle, so shorting is possible.

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