Feb. 20 at 10:25 AM
$SPY $TOL $PHA $DHI
With the median home price at
$404,000 the chart will remain in a sideways consolidation pattern.
Two things;
Either home prices need to drop to
$320,000
Or the FED has to start buying MBS’s again in the 2% range.
What people need to understand is this, rates aren’t high. Home values are simply too high.
With mortgage rates around 6%, the only way to get home sales rising again is for home values to drop.
Well, or get wage inflation to increase substantially and I don’t see that happening.
As I mentioned a few weeks ago, median home prices are 10% below their peak.
Down from
$440,000
I still see
$320,000 coming.
Another 20%
Unless the Federal government starts buying MBS’s again and I don’t see that happening.
I definitely don’t want them to.
https://wolfstreet.com/2026/02/19/pending-home-sales-plunge-to-record-low-in-the-data-from-already-low-levels-on-big-drops-in-the-south-midwest/
