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Peter Schiff Says People Are Going to 'Mail In Their Keys' If Home Prices Finally Adjust To Match High Mortgage Rates, Triggering A Housing 'Emergency'
Yahoo Finance· 2025-10-07 17:00
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. When Peter Schiff talks about housing, people tend to listen—he was one of the few voices who warned about the 2008 crash before it happened. Schiff, the CEO and chief global strategist of Euro Pacific Asset Management and host of "The Peter Schiff Show" podcast, is once again sounding the alarm. He argues that rising mortgage rates and inflated home prices are on a collision course, and that this time m ...
Peter Schiff warns of US ‘housing emergency’ — with a cascade of defaults as Americans mail back their keys
Yahoo Finance· 2025-09-25 15:11
Core Insights - Economist Peter Schiff warns of a potential housing crisis in the U.S., suggesting that many homeowners may default on their mortgages and "mail in their keys" due to inability to sell their homes for more than they owe [6][2] - The current housing market is characterized by tight lending standards and a significant shortage of homes, estimated at 4.7 million, which has kept prices elevated despite rising mortgage rates [1][3][4] Housing Market Dynamics - The average rate on a 30-year fixed mortgage has increased from below 3% to over 6% in recent years, contributing to a disconnect between home prices and borrowing costs [3][4] - The S&P CoreLogic Case-Shiller U.S. National Home Price Index has risen more than 50% over the past five years, indicating persistent high prices despite increased mortgage rates [3][4] Economic Implications - Schiff predicts that home prices will eventually need to adjust downward to align with higher mortgage rates, which could lead to a "housing emergency" [3] - The affordability crisis in the housing market reflects broader cost-of-living pressures, with inflation driving up the costs of materials, labor, and land, thereby increasing home values [13] Investment Opportunities - Despite concerns in the housing market, there is a trend of rising rents, which can provide landlords with a steady cash flow that adjusts with inflation [12][13] - Real estate is viewed as a productive, income-generating asset, with investment options available through crowdfunding platforms that allow for lower entry costs [14][15]
X @Bloomberg
Bloomberg· 2025-09-01 19:47
Treasury Secretary Scott Bessent said the Trump administration may declare a national housing emergency this fall as the White House looks to highlight key issues for midterm campaign voters https://t.co/bEf5ycupXO ...