Almost two weeks ago Freddie Mac cited the average 30 year US mortgage just rose above 6% for the first time since 2008, with real-estate brokerage Redfin commemorating the move by saying that “This Is The Sharpest Turn In The Housing Market Since The 2008 Crash.” A few days later, Jeff Gundlach points out today that the 30 year rise was fast…
The national average 30 year mortgage rate just soared above 7.0%, hitting 7.08% and the highest since December 11, 2000.
The fastest 1% increase in mortgage rates in history; inside of a month.
The fastest ever collapse in YoY Case-Shiller prices, and the first sequential drop in 112 years.
The typical home now sells for less than the asking price.
The median American household would of needed to spend 44.5% of their income to afford payments on a median-priced home in the US, the highest percentage on record with data going back to 2006.
Altanta Fed, a few weeks ago
That number is over 50%. More than half of the average US household’s income goes to paying housing payments, nearly double just two years ago.
The Fed, which still thinks it can achieve a soft landing… The Fed may have just broke the entire financial system.