Saturday , August 13 2022
Home / Mosler Economics / DFO optimism, homebuyer competition, Architecture index, mortgage purchase apps, builder confidence

DFO optimism, homebuyer competition, Architecture index, mortgage purchase apps, builder confidence

Summary:
This makes sense to me. We have had a post-Covid war slowdown in federal spending that is evidenced by the decelerating economy. But the federal deficit is still high enough to keep things muddling through at modest growth, helped some by the rate hikes whichare universally believed to slow things down when in fact the increased deficit spending for the additional federal interest expense adds a bit of (highly regressive) support for the economy: It has fallen off with the slowdown but remains reasonably high historically: Down from the highs but still showing growth: After a large Covid dip followed by a post-Covid recovery sales are just below where they were for most of the pre-Covid years. And with prices a lot higher nominal sales are still much higher: Mortgage

Topics:
WARREN MOSLER considers the following as important:

This could be interesting, too:

Lars Pålsson Syll writes Dumb and Dumber — the Chicago economics version

WARREN MOSLER writes CPI, PPI

Editor writes A coherent alternative has to be proposed

Dan Crawford writes Open thread August 9, 2022

This makes sense to me. We have had a post-Covid war slowdown in federal spending that is evidenced by the decelerating economy. But the federal deficit is still high enough to keep things muddling through at modest growth, helped some by the rate hikes which
are universally believed to slow things down when in fact the increased deficit spending for the additional federal interest expense adds a bit of (highly regressive) support for the economy:

DFO optimism, homebuyer competition, Architecture index, mortgage purchase apps, builder confidence

It has fallen off with the slowdown but remains reasonably high historically:

DFO optimism, homebuyer competition, Architecture index, mortgage purchase apps, builder confidence

Down from the highs but still showing growth:

DFO optimism, homebuyer competition, Architecture index, mortgage purchase apps, builder confidence

After a large Covid dip followed by a post-Covid recovery sales are just below where they were for most of the pre-Covid years. And with prices a lot higher nominal sales are still much higher:

DFO optimism, homebuyer competition, Architecture index, mortgage purchase apps, builder confidence

Mortgage purchases applications are also down to levels just below pre-Covid years:

DFO optimism, homebuyer competition, Architecture index, mortgage purchase apps, builder confidence

Housing starts remain above pre covid levels, even with higher rates, and the chart gives a good indication of how much housing has declined in size relative to the rest of the economy since the 2006 peak:

DFO optimism, homebuyer competition, Architecture index, mortgage purchase apps, builder confidence

Confidence is down but still above 50 indicating modest growth is expected:

DFO optimism, homebuyer competition, Architecture index, mortgage purchase apps, builder confidence

WARREN MOSLER
Warren Mosler is an American economist and theorist, and one of the leading voices in the field of Modern Monetary Theory (MMT). Presently, Warren resides on St. Croix, in the US Virgin Islands, where he owns and operates Valance Co., Inc.

Leave a Reply

Your email address will not be published. Required fields are marked *