top of page

And so it begins.

I dropped the Chicago Tribune earlier this year as I was sick of politics being passed off as news. Instead I started reading the Telegraph out of London. They are probably as political but at least they don’t make excuses for bad decisions by the Illinois governor. this morning the headline for one of their articles was “Housing market shows signs of cooling”.


Signs of cooling


The annual pace of increases to UK house prices slowed in May for the third month in a row, a possible sign of cooling demand amid the cost of living crisis, according to mortgage lender Halifax. Prices rose by 10.5pc compared with May last year, down from April's 10.8pc increase.


Russell Galley, managing director at Halifax, said the main driver for continued price increases, which have now climbed for 11 months in a row, was the shortage of homes for sale.


“The housing market has begun to show signs of cooling,” he added. “Mortgage activity has started to come down and, coupled with the inflationary pressures currently exerted on household budgets, it’s likely activity will start to slow.”


My take away from this is that the markets do their job and begin to rationalize prices regardless of government influence. That the more the gov is involved the worse and more difficult it is for these natural activities to work it out. So…Perhaps the fed will take note and realize that market forces will do their job? Maybe they don’t need to be too aggressive with rates? Maybe this is why the 30 year treasury isn’t reflecting 4 or 5 more rate increases? Anyway, one can hope.

9 views0 comments

Recent Posts

See All
bottom of page