Published by Breitbart News | July 18, 2022
According to a recent Primerica study, 77 percent of middle-income families are preparing for a recession with nearly three-quarters cutting back on spending.
The key piece of data we were waiting on today is the National Association of Home Builders index (NAHB), which reflects how home builders are feeling. And the feeling is not great, apparently. Builder sentiment is now at 55, a drop of 12 points. This is the largest single-month drop ever, with one exception. (The exception being April 2020. As you may recall, the world had decided to shut down at exactly that time.)
The silver lining here is that a number above 50 is still considered positive. With surging interest rates, steadily rising costs due to the Bidenflation, and other supply chain related bottlenecks, it’s a minor miracle that anyone wants to build at all.
While the wealthy are somewhat insulated from the bad news, normal Americans are getting hit hard. NAHB’s chief economist Robert Dietz noted that “significant segments of the home buying population are priced out of the market.” This has been a standard pattern in our current economic climate. According to a recent Primerica study, 77 percent of middle-income families are preparing for a recession with nearly three-quarters cutting back on spending. Meanwhile, credit card debt continues to climb.
Sales are also down sharply in local housing markets, and inventory has surged. California is a standout here; sales are down 20.9 percent year-over-year in the Golden State.