Are We on Some Sort of a Cycle? Exactly 14 Years Later, Another Housing Crash Has Arrived
by Michael Snyder August 24, 2022 Roamers house is NOT For SaleDo you remember what happened precisely 14 years ago? In 2008, the housing market collapsed and the subprime mortgage meltdown made national headlines day after day as unprecedented panic swept through Wall Street. To many of those that were working in the financial industry at that time, it seemed like the world was ending. Of course the world was not actually ending, but without a doubt it was an extremely painful episode for our nation. Countless Americans lost jobs or homes (or both), and the ripple effects of that crisis can still be felt today.
But did you know that there was another housing crash exactly 14 years before the one that we witnessed in 2008?
In 1994, surging mortgage rates caused new home sales to plunge dramatically…
The average 30-year fixed mortgage rate increased by around 2 percentage points in 1994, ending the year north of 9%. New home sales slumped. In December 1993, the seasonally adjusted annual rate of new single-family-home sales was 812,000. A year later, in December 1994, it had fallen over 20% to 629,000.
That kind of sounds like what we are experiencing right now.
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https://noqreport.com/2022/08/24/are-we-on-some-sort-of-a-cycle-exactly-14-years-later-another-housing-crash-has-arrived/