NEW YORK, July 25 (Reuters) – With the Federal Reserve set to jack up interest rates again this week, Wall Street is on alert for signs of recession, and recent housing data suggests the sector may be a harbinger of a cooling economy.
Homebuilder stocks, sales and mortgage data show that previously booming housing market is falling back to earth amid a broader economic cooldown.
Surging mortgage rates, exacerbated by Fed hikes this year, have begun to reverse a demand/supply imbalance, the result of a suburban stampede prompted by COVID-19 lockdowns. The ensuing drop in inventories, along with a scarcity of lots, materials and construction labor, has launched home prices into orbit.
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