People are stretching to buy starter homes at ultra low interest rates, it only gets worse when they raise those interest rates just a little.
Putting it another way, there is a reason they are holding rates so low for so long while pumping Billions (and in the US Trillions) into the economy. The market is not remotely balanced and massive deflation takes hold if they don't.
Something has to give eventually and I am not sure this is the market bottom.
Claeren.
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