Eurodollar University BREAKING: Trump Just Did Something No One Expected
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Jan 22, 2026 The recent 9.3% drop in pending home sales has experts puzzled about the housing market's direction. Falling mortgage rates aren't revitalizing demand, as job confidence and incomes are the real constraints. Trump's new executive order aims to limit institutional buying of single-family homes, reflecting political shifts. The fallout from the 2008 crisis continues to shape mortgage lending and stifle new construction. Meanwhile, institutional buyers like BlackRock are pushing home prices higher, complicating affordability.
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Sharp December Drop Signals Housing Weakness
- Pending home sales plunged 9.3% in December, signaling demand weakness heading into 2026.
- Jeff Snider argues this decline shows lower mortgage rates alone aren't reviving housing demand.
Income, Not Rates, Are The Main Constraint
- Lower rates aren't solving housing because the core problem is weak jobs and incomes.
- Snider emphasizes buyers lack confidence in stable income, which suppresses mortgage demand.
2008 Shift Restructured Mortgage Markets
- The post-2008 swing from volume to safety reshaped mortgage lending and curtailed access for typical borrowers.
- Snider links that shift to a persistent shortfall in housing construction and credit for ordinary buyers.