Is The Housing Market Finally Shifting?

“I think it’s pretty clear to most people at this point that the housing market is finally undergoing a significant, fundamental reversal in activity,” Hedgeye Macro & Housing analyst Josh Steiner says in this clip from The Macro Show.

Steiner reviews the rising number of homes for sale that are lowering asking prices as well as the rising number of FHA loans that are now in default – two key indicators of a much different housing landscape than even a few months.

[sej]

The use of the NMDR is very misleading. The NMDR “measures how loans originated in a given month would perform if subjected to the same stress as in the financial crisis that began in 2007.” So, the chart really only shows origination trends over time, and maps each type of origination to a loan risk bucket and associated default rate that the bucket experienced during the GFC. If you look at a trend of credit availability vs HPA, it will tell an entirely different story, as underwriting standards are far superior now vs the GFC. At the end of the day, we have a huge under supply of homes, the largest generation (millennials) entering home buying age, and a new normal environment of work from home and de-urbanization driving demand even further.

#OldWall

[somguy]

Do your concubines identify with El Chapo's?