US national home price growth has slowed to its lowest level in 7 years, according to June’s Case-Shiller report.
The decline in national home price growth coincides with The Fed’s decision to let its balance sheet self-unwind.
Phoenix, my former residence, is now the fastest growing metropolitan area in the US, even faster than Las Vegas. Seattle is now the slowest growing metro area in terms of home prices and is actually declining. San Francisco is barely above 0% at 0.7% YoY.
The FHFA purchase-only home price index YoY has fallen to 1.0.
Time for some more “Fed Fresh” spray?
Denmark’s Jyske Bank has introduced a 10-year, fixed-rate loan at … -0.5%. As have other Danish lenders Realkredit Danmark, Totalkredit and Nordea Kredit.
Of course, the entire Danish sovereign yield curve is negative and their 10-year sovereign rate is -0.53%., essentially the same as the Jyske Bank 10-year loan rate.
While this seems insane, Jyske Bank has only lost 50% since 2007 compared with Deutsche Bank that has lost considerably more since 2007.
Not to mention that the Danish Central Bank has a bank rate of … -0.7%.
How low can they go?
An example of Danish housing imitating North Sea icebergs waiting for the next Titanic.