Housing Market Plunges: Economist Issues ‘Red Flare’ as Builders Retreat
Housing Market Plunges: Economist Issues ‘Red Flare’ as Builders Retreat The U.S. housing market is flashing a stark “red flare,” with a rapid deterioration now poised to significantly drag down overall economic growth, according to Moody’s Analytics chief economist Mark Zandi. Just weeks after his initial “yellow flare” warning, Zandi asserts that unless mortgage rates substantially decline from their current near-7% levels, home sales, new construction, and prices are set for a steep slump. Recent data paints a grim picture:…