According to the Federal Reserve, the era of cheap money is over. But even before the Federal Reserve raised interest rates in December, the market was already pricing in higher rates. Mortgage rates began to creep higher as well as bond yields. Cheap money was fueling everything in this “recovery”. It was only a recovery of asset prices such as equities and home values. High end apartments around the world have been in a large bubble for the past 7 years, and prices are now beginning to fall. Home prices get valued higher as speculators fuel a buying frenzy, only to get caught in a bad trade when rates begin to rise. Job creation and wage growth is at a standstill. This is a part-time economy. If you look at the FRED data from the St. Louis Fed, you can clearly see that real housing has not been in a recovery, and housing starts are not even where they were in 1995. It should come to no surprise that home buying, and building, is sliding.