Anthony Pompliano, an investor and entrepreneur with more than 1.5 million followers on X, warned his followers that housing affordability in the U.S. has "become a national crisis."
Pompliano shared a chart from Goldman Sachs that showed the bank’s home affordability index was at its lowest point in the past 26 years.
Higher federal fund rates pushed mortgage rates to 8%, their highest level in the past 20 years. This meant a family’s monthly payments on mortgages were significantly higher than they were just one year ago.
Why Does It Matter? Owning a house is one of the most crucial steps to building wealth in the U.S. People who are able to purchase a home are able to pay monthly payments toward building that equity versus paying monthly rent payments that go to a landlord. A lot of homeowners have a majority of their net worth tied to their house.
Pompliano said that during times of crisis, people need to look toward solutions.
Pompliano tweeted he is teaming up with Lance Lambert, the co-founder of ResiClub analytics, a new site that tracks housing market trends and data.
Stock Impact: Many companies in the real estate and housing industry have been crushed throughout the last few weeks as mortgage rates continued to rise and buying demand in the housing market appeared to have started to slow down.
Zillow Group Inc’s Z stock traded down more than 12% in the past month. Opendoor Technologies Inc OPEN stock was down more than 27% in the same time period. Rocket Companies Inc RKT was also down about 17% in the past month.
The real-estate industry has remained stubborn, refusing to participate in the relatively broad-market rally throughout 2023. The iShares US Real Estate ETF IYR was down about 7% YTD, while the S&P 500 was up about 7%.
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