Below is a chart and brief excerpt from today's Early Look written by Hedgeye analyst Daryl Jones.
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Of course, this is not a terrible surprise given the rapid increase in mortgage rates (which are now near decade highs) and commensurate decline in affordability. In the Chart of the Day, we put this rate shock into context. As the chart highlights, this is one of the quickest increases of mortgage rates in the shortest periods of time that we’ve ever seen. As a result, mortgage payments on new loans are up some +26% Y/Y in a period when prices themselves have increased near 20%. |
