(I am a blogger not someone offering financial advise. I don’t even listen to myself most of the time)

Housing Market Meets a New Crisis

The jobs market report yesterday was weak.

Today the report on home sales were down 8% as buyers struggle.

Even if you are employed a weak job market means less upward mobility and the ability to make large ticket purchases including homes. The U.S. has not built enough housing in over 40 years so a lack of supply and prices inching up is not surprising either. The housing crisis will not be resolved until we substantially build more single family homes. Interest rate cuts can only do so much if more people are chasing homes that don’t exist.

With the job market down and what I think will be a fairly tame inflation rate on Friday my guess is the Fed will lower interest rates. I am not an economist and this goes totally against what is being predicted. All predictions I have seen are rates stay the same.