Real Estate Mini-Bubble Will Be Economy’s Next Problem

Interesting observations (note the timing: “…mostly from housing activity in the period prior to the spike in mortgage rates of the last six weeks.”):

…we’re seeing the first indications of the mini-bubble potentially beginning to deflate.

New housing starts plunged 9.9% in June, to their lowest level in 10 months. Permits for future starts fell 7.5%. Existing home sales declined 1.2% versus the consensus forecast for a 1.5% increase. Pending Home Sales fell 0.4% in June. Construction Spending unexpectedly fell 0.6% in June, well below the consensus forecast for an increase of 0.5% (and the largest monthly decline in five months). And these reports are mostly from housing activity in the period prior to the spike in mortgage rates of the last six weeks.

Source: The Real Estate Mini-Bubble Will Be Economy’s Next Problem – Forbes.

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