Taps Coogan – October 16th, 2023

The following chart, via Charles Schwab’s Liz Ann Sonders, highlights how sentiment about the housing market remains pinned at multi-decade lows, particularly vis a vis high interest rates:

Not much improvement for how consumers feel about housing market, especially as it pertains to rates’ impact on sentiment per @UMich sentiment update pic.twitter.com/V3dVyZZRmG

— Liz Ann Sonders (@LizAnnSonders) October 16, 2023

Of course, this should come as little surprise considering that mortgage rates continue to march higher. Accordingly, with mortgage rates at nearly 8%, to maintain the same monthly mortgage payment as few years ago, home prices would need to be something like 50% lower.