EVERYTHING IS GOING SWIMMINGLY: Goldman Delivers Grim Outlook For Prospective Homebuyers.

Given the latest inflation data, a largely in-line CPI report followed by a ‘red hot’ PPI print in November, this data suggests that longer-term yields are to stay higher over the medium- to longer-term, according to Bloomberg’s Simon White.

In other words, White suggests that this inflation data squashes the dovish party. As of late Thursday, the market is pricing in only two rate cuts for next year.

Goldman analysts noted that without interest rate relief and the general leanness of housing inventory, home prices are forecasted to increase by 3% YoY.

“Said differently, we estimate the mortgage payment on a median-priced single-family home is 35% of the median household income. Although this is down from 39% a year ago, it remains well above the 30% threshold for most lenders,” they explained.

They’ll turn us all into renters ’cause they’re easier to please.