case 20

Ten days ago, we wrote that the "US Housing Market In Peril As "Increase In Mortgage Rates Has Shocked Consumers." Fast forward to today when the same "shocked consumers" referenced in the WSJ piece must be on the verge of a nervous breakdown because according to the Mortgage Brokers Association, rates on US fixed-rate mortgages rose to their highest levels in more than two years, sending weekly home loan application activity to its weakest since early January,  according to the latest MBA data.

From Marc Hanson of M Hanson Advisors

Houses have NEVER BEEN MORE EXPENSIVE to end-user, mortgage-needing shelter buyers. The recent rate surge crushed what little affordability remained in US housing. It now it requires 45% more income to buy the average-priced house than just four years ago, as incomes have not kept pace it goes without saying.

The spike in rates has taken "UNAFFORDABILITY" to such extremes that prices, rates, and/or credit are now radically out of scope.