Doom, Gloom, Kool Aid, And Warm Porridge

Doom, Gloom, Kool Aid, And Warm Porridge

Mortgage rates finally broke the 8% ceiling this week after months of gradual upward movement in the 7% range. At the same time, Existing Home Sales fell to the lowest levels in more than a decade. Pretty gloomy... but there are silver linings and perhaps even some overly optimistic Kool Aid to drink. As always, we'll try to focus on the warm bowl of porridge in the middle. It's very true.  The following charts of home sales and interest rates are not great. But unlike the last time home sales were this low, we're in the midst of a supply shortage as opposed to a glut. That has allowed the housing market to be much more resilient in terms of home prices.  In year-over-year terms, prices are already back in positive territory. We can also consider that t