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Is there an impending recession?

impending recession in the United States

For months now we had been seeing the news that talks about an impending recession and sometimes another housing bubble?  Is there really an alarm for something of this concern once again?  Do you feel that this is a legitimate concern or was it a false alarm and panic?

Signs of an Impending Recession

According to a trending topic spotted on LinkedIn, the key to this alarm is the yield curve.  The yield curve is a measure of short-term and long-term interest rates on U.S. government debt.  This curve usually slopes upward but at the moment is going down and is flattening.  Signs like this usually shows before a major recession according to some investors.  It is really that or was it just because of central bank intervention?

impending recession
In a “risk off” day and with yields on US government bonds now edging lower, this chart from Bloomberg on the flattening of yield curves. – Mohamed El-Erian, Chief Economic Advisor, Allianz;

Yes! A big one. And it’s gonna hurt worse than ever. US dominance is about to disappear. The USD is about to collapse. We. Are. Fukt. – Chris Dage0s, Director/co-owner Flow Infused Nutraceuticals & L.A.G. Tactical

If we would take into account some existing scenarios in the market, you can expect a general repercussion of there things.  Among those that are currently existing include higher interest rates, rising debt defaults, a looming trade war and the removal of key trade alliances.  Imported goods will be more expensive and our exports will also be more expensive.

Let us watch this video and then tell us what you think of the possibility of another US recession.

Impending Recession and Mortgage

An impending recession or any signs of it for that matter is bad for the mortgage industry.  We are already seeing increasing home prices and a slowing down of the construction of new houses.  If a recession indeed happens then it can distort the current success trend that is happening within the mortgage industry.

Despite of the news of an impending recession, however, sales of new homes in the U.S. increased by 6.7% in May, according to CNBC.  This is due to the purchase of about 689,000 new single-family homes. It is a good news that The Wall Street Journal confirms that this is “still well below the elevated levels seen before the 2007-09 financial crisis.”

What do you think will be the effects of an impending recession to the mortgage industry?  Share us your views.

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