Three Mini-Bubbles Are Bursting – 12.29.16

 

  • The world has gotten so used to ultra-low interest rates that even economists and money managers seem to be shocked by what happens when rates start creeping back towards normal levels.
  • Some of the mini-bubbles that formed in an essentially free-money environment are now starting to leak. Notably:
  • US Housing
    While the action in this sector is nothing like the raging mania of the 2000s, prices in many hot US markets are at all-time highs, while affordability is at or near an all-time low. And now rising
  • mortgage rates are beginning to bite.
  • Pending Home Sales Reflect “Dispirited” Buyers.
  • (Mortgage News) – Pending sales, which were widely expected to make a good showing in November, pulled back sharply instead. The National Association of Realtors® (NAR) said its Pending Home Sales Index…

Read more at:Three Mini-Bubbles Are Bursting

Source: zerohedge.com

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