Mortgage rates soar to over 7% – the highest level in 21 years – as luxury home purchases fall 28% and rest of market tanks 19.5% – as monster Fed rises hit borrowers

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  • Mortgage rates soared above 7 percent this week, the highest level in 21 years and far exceeding rates recorded during the 2008 housing market crash
  • Luxury home sales in the US have sunk by 28.1 percent year-over-year in August, beating out the previous record drop of 23.2 percent in June 2020
  • Markets in Oakland, San Jose, Miami, San Diego and Seattle have seen the biggest hits this year as all 50 major metro areas have been impacted 
  • Non-luxury home sales across the nation have also dipped by 19.5 percent 
  • Economists said the drop in sales can be attributed to soaring federal interest rates and high inflation 

https://www.dailymail.co.uk/news/article-11254447/Luxury-homes-fall-28-rest-market-plummets-19-5.html

The implosion of Housing Bubble 2.0 is going to be one for the books. Heckova job, “Zimbabwe Ben” Bernanke, Yellen the Felon, & BlackRock Jay.

https://wolfstreet.com/2022/09/27/the-most-splendid-housing-bubbles-in-america-sept-update-price-drops-spread-across-us-steepest-monthly-plunges-since-housing-bust-1-in-san-francisco-3-5-seattle-3-1-san-diego-2-5/

The Case-Shiller index, which lags by several months, is starting to flip market by market, including in Phoenix, Dallas, Washington DC, and Boston.

h/t  Boo_Randy