Housing

Wells numbers suggest bad news for housing market going forward. Although we should take ZeroHedge with a grain of salt because the sky is always falling over there.

I'm of two minds re: housing in Coastal California. On the one hand, the prices are high because of supply issues that I don't see going away. On the other hand, incomes aren't rising as fast as prices and something that can't go on, won't. So that fact goes some of the way to explain how a small 1% rise in rates totally kills new mortgage applications: new buyers are pushing their housing costs to the limit.

What breaks first?