Canadian 5-year fixed mortgage rates have moved above 4% and (as shown below) US 30-year mortgage rates above 5%, up more than 1% in just the last month (similar leap in Europe). This rapid 25% increase in interest costs, coming amid highly indebted households and corporations, is the most significant financial shock since 2007.
(Click on image to enlarge)
Cycle analyst Eric Basamajian discussed the rate shock ramifications in the interview below and offers an insightful big picture on the housing market, economic cycle and more. Host Hartman asks him about many of the mainstream bullish talking points.
Eric Basmajian, economic analyst and founder of EPB Macro Research. Jason Hartman and Eric discuss the rapid decline in real personal income and standard of living, how the rate shock will filter through to the housing market and much more. Eric also talks about the single most important variable to understand where the next 10 years of the real estate market are going and the four corners of an economy: income, consumption, employment and production.
VIdeo Length: 00:45:26
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