Is the Global Housing Market Heading for a Downturn?

The Great Deceleration in housing might just be bigger than a seasonal cooldown.

The economic shock of higher mortgage rates means borrowers are getting stretched thin to a degree unseen since 2006. And home shoppers in April and May are finally backing away from record home prices.

On Thursday, Freddie Mac deputy chief economist Len Kiefer tweeted about what this downward shift means: "The U.S. housing market is at the beginning stages of the most significant contraction in activity since 2006."

So today on THC, we’re going to talk about the problem of affordability in many hot markets, from Phoenix, Charlotte to Toronto, Canada and what that impact could be.

Important Links:

• Even Deep-Pocketed Buyers Are Starting to Back Away From the U.S. Housing Market
• The housing market is entering the ‘most significant contraction in activity since 2006,’ says Freddie Mac economist
• Toronto Home Prices Slide for Third Month on Higher Rates
• Mortgage Rates Hit 5.27%, Highest Level Since 2009