Macro Nugget: US Real Estate and Interest Rates
US housing keeps up for now despite sky-high rates. But are the rates just a nothing burger here?

As we approach the zenith of a historic hiking cycle, it’s hardly surprising to see mortgage applications plunging to unprecedented lows. We’ve previously discussed how households that secured low rates have minimal motivation to relocate or refinance.
Consequently, there’s been a significant drop in volume, which is evident in the decline of purchase applications.
Chart 1: US RE Mortgage Application
US housing keeps up for now despite sky-high rates. But are the rates just a nothing burger here?
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