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Podcast: Notes on the Week Ahead
Episode: The Investment Implications of the Housing Slump
Description: For many people, I suspect, 2022 will be a year to forget. However, for millions of home-builders, home-sellers and home-buyers, it will be remembered for the speed with which a housing boom turned into a housing bust. The reason, of course, has been a surge in mortgage rates. These rates look likely to stay high, at least over the next year, contributing to sharp declines in housing starts and home sales and a negative impact on GDP. Eventually, this could motivate the Federal Reserve to reverse course and cut rates. However, mortgage rates are unlikely to fall to anything like the l...