When mortgage rates jumped in anticipation of the start of Fed tapering back in June 2013, the inherent cracks in the foundation of the housing industry became apparent.
Seriously, how healthy is a housing market that relies on artificially capped interest rates and literally tens of billions of dollars a month of fiat money pumped into Treasurys and bonds?
Now it’s a full year later and despite the fact that interest rates are nearly back to where they were a year ago, housing has stalled out.
Worse, unless you believe the happy-happy-joy-joy analysts on CNBC or anything on Business Insider, it’s been pretty apparent for, oh, the past 12 months.
That’s not to say that it’s doom and gloom. There are some strengths showing, despite the top-line numbers showing year-over-year drops in everything from sales and construction spending to price increases and mortgage originations.