The United States housing market is showing worrisome signs of a potential economic downturn amid growing uncertainty.
Recent indicators reveal a significant decline in housing buying conditions, marking levels not seen in over four decades. According to Game of Trades, a research investment platform, insights shared on July 5, 2024, suggest parallels with economic downturns in 1974 and 1981, both preceding severe recessions.
BEWARE: Buying conditions in the US housing market has collapsed
Reaching levels only seen 2 times since 1960:
– 1974
– 1981Both instances ended in a recession
The housing market is a key leading indicator of the business cycle
And it tends to react very quickly to interest… pic.twitter.com/ACn9UjBZ5b
— Game of Trades (@GameofTrades_) July 5, 2024
Game of Trades emphasized that the current collapse in buying conditions mirrors historical patterns observed in pivotal economic downturns of the past. This historical context underscores the housing market’s role as a crucial leading indicator of broader economic cycles, hinting at potential challenges ahead for the economy.
The substantial decrease in housing buying conditions reflects a notable loss of consumer confidence, a pivotal factor influencing broader economic trends.
Historically sensitive to interest rate changes, the current downturn may be linked to recent interest rate hikes aimed at curbing inflation. Higher mortgage costs typically reduce affordability and dampen housing demand, exacerbating market volatility.
Eyes are now on the Federal Reserve’s impending monetary policy decisions, expected to steer the economy’s course. Amid mounting speculation about a possible recession in the latter half of 2024, the housing market’s volatility serves as a critical barometer of broader economic uncertainty and weakened consumer spending power.
BitMEX co-founder Arthur Hayes has issued a cautious outlook for Bitcoin and the broader crypto market, predicting a possible short-term downturn as the U.S. government shifts its liquidity strategy.
Bitcoin’s bullish undercurrent continues to strengthen as on-chain data and derivatives market behavior reveal aggressive accumulation from long-term holders and whales.
Zak Cole, a prominent Ethereum core developer, has unveiled a bold new initiative aimed at significantly expanding the Ethereum ecosystem and driving the price of ETH to $10,000.
According to a new report by CryptoQuant, Chainlink (LINK) is locked in a prolonged accumulation phase between $12 and $15, driven by aggressive whale behavior amid muted retail participation.