Today King World News takes a look at shocking surprises in the housing market and how these surprises will impact the gold & silver markets.
First, Fitzpatrick’s fascinating notes and charts on the housing market…
Top Citi analyst Tom Fitzpatrick sent KWN the following regarding the housing market:
30-Year Mortgage Rates Hit New Lows
“Given that we firmly believe that the present level of long term US rates is insanity (and insanity could continue given the value in the US long end of the curve versus the Japan and European markets) it is providing increased stimulation to what we believe is a healthy economy and a buoyant housing market (see 30-year mortgage rates hitting new lows below).
New Home Sales
Remains buoyant and still has scope for further gains (see new home sales chart below).
Stock Of New Homes Falling
The low of the last cycle in 1998-2003 was around 3.5 months, which is now not far away. The low in the 1970’s was around 4 months, so that 3.5 months level was the lowest level seen in over 50 years (see chart below).
But what does this mean for the gold and silver markets?…
But What About Gold & Silver Prices?
King World News note: If the U.S. is to experience further housing price increases it will most likely be accompanied by lower interest rates and an even further loosening of monetary policy. Additional QE and lower interest rates will simply add fuel to the already extremely bullish fundamentals for the gold and silver markets. ***To hear about the gold and silver markets, listen to the jaw-dropping audio interview with Michael Belkin, the man who advises the most prominent sovereign wealth funds, pension funds, hedge funds, and institutional funds in the world discussing the historic run in the gold & silver markets, what to expect next for gold, silver and the shares and much more by CLICKING HERE OR ON THE IMAGE BELOW.
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