{"id":1648513,"date":"2022-09-20T08:18:41","date_gmt":"2022-09-20T12:18:41","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1648513"},"modified":"2022-09-20T08:24:17","modified_gmt":"2022-09-20T12:24:17","slug":"economist-u-s-housing-market-in-deep-recession","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/economist-u-s-housing-market-in-deep-recession\/","title":{"rendered":"Economist: U.S. Housing Market in &#8220;Deep Recession&#8221;"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Feconomist-u-s-housing-market-in-deep-recession%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1648513&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>The US housing market is in the midst of a \u201cdeep recession\u201d that could put pressure on the Federal Reserve to ease up on interest rate hikes, a prominent economist warned on Monday.<\/p>\n<p>Homebuilder confidence declined for the ninth straight month in September <a href=\"https:\/\/nypost.com\/2022\/09\/15\/mortgage-rates-top-6-first-time-since-2008-housing-crash\/\" target=\"_blank\" rel=\"noreferrer noopener\">as surging mortgage rates<\/a> and steep prices pushed many buyers out of the market, according to the National Association of Home Builders. <\/p>\n<p>Builder confidence fell to its lowest level since 2014 when excluding the early days of the COVID-19 pandemic, the index showed.<\/p>\n<p><a href=\"https:\/\/nypost.com\/2022\/09\/08\/us-housing-market-to-remain-especially-frigid-as-mortgage-rates-spike-redfin\/\" target=\"_blank\" rel=\"noreferrer noopener\">The prolonged downturn<\/a> in confidence shows the housing market has been \u201cin a tailspin for the whole of this year,\u201d according to Pantheon Macroeconomics chief economist Ian Shepherdson.<\/p>\n<p>\u201cActivity tracks mortgage applications with a lag, and the early September numbers are grim, even before the full hit from the rebound in mortgage rates in recent weeks works through,\u201d Shepherdson said in a note to clients on Monday.<\/p>\n<p>\u201cIn short, the housing market is in a deep recession, which is already hammering homebuilders and will soon depress housing-related retail sales,\u201d he added.<\/p>\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/09\/us_housing_market_6.jpg\"><\/a><figcaption>The housing market is in the midst of a recession, according to some experts.<\/figcaption><figcaption><span class=\"credit\">AP<\/span><\/figcaption><\/figure>\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/09\/us_housing_market.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/us_housing_market.jpg\" alt=\"Home under construction\" class=\"wp-image-23920532\" srcset=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/us_housing_market-1.jpg 1536w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/us_housing_market-2.jpg 1024w, https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/us_housing_market-2.jpg&amp;w=512 512w\" \/><\/a><figcaption>Surging mortgage rates have weighed on housing activity.<\/figcaption><figcaption><span class=\"credit\">AP<\/span><\/figcaption><\/figure>\n<p>The NAHB index\u2019s monthly decline in September was more severe than analysts expected and coincided with a spike in mortgage rates. The average 30-year mortgage rate topped 6% for the first time since the housing market imploded in 2008 during the Great Recession.<\/p>\n<p>Mortgage rates have spiked as the Fed moves forward with a series of rate hikes aimed at tamping down decades-high inflation.<\/p>\n<p>Central bank officials are expected to implement another larger-than-normal hike of three-quarters of a percentage point, or 75 basis points, following their meeting with this week, with some analysts suggesting an unprecedented full-point hike could be in store. A basis point is 1\/100th of a percentage point.<\/p>\n<div class=\"single__inline-module inline-module inline-module--newsletter alignright\">\n<div class=\"inline-module__inner\">\n<h3 class=\"inline-module__title headline headline--combo-sm-md\">\n\t\t\tKeep up with today&#8217;s most important news\t\t<\/h3>\n<p class=\"inline-module__cta\">\n\t\t\tStay up on the very latest with Evening Update.\t\t<\/p>\n<\/p><\/div>\n<\/div>\n<p>But troubling signs in the housing market could lead the Fed to rethink its plan, according to Shepherdson.<\/p>\n<p>\u201cThe longer and deeper the housing recession becomes, though, the greater the pressure it will exert on the Fed to dial back the pace of tightening,\u201d he wrote.<\/p>\n<p>\u201cMarkets currently price in an 80% of chance of another 75 (basis point) hike in November, but we think 50bp is much more likely, and the parlous state of the housing market is a key factor in our forecast,\u201d he added.<\/p>\n<p>As The Post has reported, a slowdown in buying activity is already resulting <a href=\"https:\/\/nypost.com\/2022\/08\/22\/home-prices-plunging-in-pandemic-boomtowns-as-market-slumps\/\" target=\"_blank\" rel=\"noreferrer noopener\">in home price cuts in some markets<\/a>, with the most severe declines occurring in areas that became \u201coverheated\u201d during the COVID-19 pandemic.<\/p>\n<p>Robert Dietz, chief economist for the National Association of Home Builders, said the ongoing housing recession \u201cshows no signs of abating.\u201d<\/p>\n<p>\u201cIn this soft market, more than half of the builders in our survey reported using incentives to bolster sales, including mortgage rate buydowns, free amenities and price reductions,\u201d Dietz said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US housing market is in the midst of a \u201cdeep recession\u201d that could put pressure on the Federal Reserve to ease up on interest rate hikes, a<\/p>\n","protected":false},"author":1,"featured_media":1648515,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1648513","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1648513","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1648513"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1648513\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1648515"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1648513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1648513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1648513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}