In August, sellers outnumbered buyers by 57.9% in the US housing market, a record gap since 2013. Redfin counted 1.53 million sellers for only about 972,300 buyers, with the 30-year mortgage rate at 6.76%. This historically weak demand, particularly pronounced in the Sun Belt, illustrates the impact of high interest rates on the American economy. This configuration poses risks for stocks and bitcoin, as restrictive monetary policy limits liquidity and appetite for risk assets. However, prolonged weakness in the housing market could eventually lead to lower bond yields and monetary easing, improving liquidity conditions for both asset classes.
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