Inflation Nation

[Pro-Life]

Three "Red Flags" That US Housing Is Starting To Roll Over
by Tyler Durden Jul 14, 2016 3:01 PM

http://www.zerohedge.com/news/2016-07-14/three-red-flags-us-housing-starting-roll-over

Ironically, as the Fed remains desperate to push rates higher (but not too high) to signal a recovery, the direct impact would be to make housing even more unaffordable for most buyers who, if CS is correct, are increasingly on the fence about jumping into a purchase. A quick look at the latest MBA mortgage purchase numbers reveals that the bulk of recent activity has been in the refi arena, with very few new actual purchases as is, as such higher rates would only further depress demand for housing.

Which begs the question: has the Fed thrown in the towel on reflating US housing - the one asset in which the US middle class has historically invested the bulk of its net worth - and is now focusing solely on the S&P which remains the playground of the 1%? If so, the surge in populist anger witnessed around the globe in the past year is certain to get even worse in the US, just as racial and class tensions in the country have never been worse.

There is a lot more at the link above...