Sep. 26 at 9:52 AM
https://wolfstreet.com/2025/09/25/sales-of-existing-single-family-homes-crushed-further-supply-at-2016-levels-condo-sales-near-low-in-the-data-supply-at-housing-bust-levels/
Supply continues to build and days on the market.
30 year mortgage rates won’t come down as much as people are hoping for.
My call has been 5.7% rates at best.
The days of 3% mortgages are gone.
The only way we will see that again is if the FED starts buying MBS.
I don’t see that happening.
They want the MBS they hold now to come off their books.
Deflation will be the only way people can afford a home.
Wages simply won’t increase enough to justify home values.
What I see coming are rents falling and home values falling.
30% correction is highly possible in some areas.
$410,000-
$435,000 has been the average.
So let’s us
$425,000
X 30% correction.
That’s
$297,500
While we won’t see all areas fall that much, I do believe
$340,000 will happen.
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