The corrections cometh

 To the housing market.

Mortgage demand fell more than 6% last week compared with the previous week, hitting the lowest level since 2000, according to the Mortgage Bankers Association’s seasonally adjusted index.

Applications for a mortgage to purchase a home dropped 7% for the week and were 19% lower than the same week in 2021. Buyers have been contending with high prices all year, but with rates almost double what they were in January, they’ve lost considerable purchasing power. …

Look, the era of zero down and low interest is, and was, ARTIFICIAL.  And it's allowed home prices to fucking SKYROCKET.  I live in an area of older homes.  Three bed, one bath, no basement.  1000 square feet homes with small yards right next to a fucking interstate.  And a home identical to mine just sold for over $380k.

My house in Wisconsin, which was a beautiful old house with wood floors and a basement on a quarter acre cost me $70k way back in 2008.  It's worth more now of course, long after we sold it.  But I wouldn't pay $200k for the house I'm living in.  For over $380k?  Fucking nuts.

And all of this is being pushed by a whole slew of government bullshit and mismanagement, which in the end is fucking over the little guy.  Thank god I bought my property back in 2003.  I couldn't afford it now, and I make a hell of a lot more money now than I did back then.  Houses in my home town?  Can't touch 'em.  Neither could my cousin, and she was pulling in six figures a year.  How in the hell is a normal person supposed to live in this economy when they can't afford a damn house, or even a pot to piss in?

And let's be honest - this is the fault of EVERYONE in the government who allowed run-away spending because gosh, interest rates were low and we can just borrow money without end!  The fuckers.

So now interest rates are going up and the market is correcting itself SLIGHTLY.  It's going to get worse.  Way worse.  Because when you stop the pendulum from swinging back, when it does finally swing it's going to blow through the other side and keep going.