The pain isn't over

When everything is powered by debt (mortgage, stonks, crypto), then a spectacular rise in interest rates takes it all down.

What does it mean for housing?

The move in the 30yr mortgage yield is simply unprecedented. The current average level around 7% implies a 20% drawdown in residential prices over the next 9-12 months on historical correlations

The correlation is VERY strong

4/n pic.twitter.com/o70fXCqm8i

— AndreasStenoLarsen (@AndreasSteno) October 21, 2022