US 1-unit housing starts declined 17.8% YoY in May, another indicator of the damage done by the economic shutdown due to the Covid-19 epidemic.
1-unit housing starts YoY are back to 2006 levels where the ALT-A / subprime virus struck with far more damage.
Notice that The Federal Reserve didn’t react with rate cuts until Q4 2007 that continued through 2008. Notice that the US is back to 25 basis points again, but with 7.09 TRILLION on their balance sheet … and all we get is -17.8% YoY decline.
Meanwhile, mortgage purchase applications have rebounded nicely.
MBA purchase applications have rebounded nicely despite the government shutdown. But in spite of the historic (or hysteric) monetary stimulus from The Federal Reserve, the US in no where the housing bubble years.
Time for more snake juice?
Here is a video of Fed Chair Jerome Powell trying to cope with the blowback from Covid-19.