New housing starts unexpectedly plunged more than economists projected in June as home builders grappled with the effects of rising interest rates curbing demand for new homes, according to data released Tuesday, adding to signs of an abrupt turnaround in the booming housing market.KEY FACTSThe number of housing starts, or ​​new houses on which construction has started, fell 2% to about 1.56 million last month despite average economic projections calling for an increase of 1.4%, the Census Bureau reported Tuesday.Building permits were slightly above expectations, coming in at less than 1.7 million, but fell from May and are down from about 1.8 million in April.In emailed comments after the release, LPL Financial chief economist Jeffrey Roach said housing starts declined because demand is “quickly drying up” from higher borrowing costs as the Federal Reserve raises interest rates, though he expects home building activity should hold up despite the grim outlook.Pantheon Macro chief economist Ian Shepherdson was less optimistic, pointing out single-family starts and permits both fell by 8% in their fourth consecutive month of declines and noting construction activity lags sales, which in turn lag mortgage applications.Mortgage applications have collapsed more than 25% this year, he adds, suggesting single-family housing construction "needs to fall by [another] 20% or so over the next few months” to be more in line with demand.The latest data comes one day after the National Association of Home Builders reported the second-worst single-month drop in home builder confidence on record, driven by ongoing production bottlenecks and high inflation that have pushed the cost beyond its market value in some cases.KEY BACKGROUNDHistorically high savings rates and government stimulus measures helped ignite a home buying frenzy during the pandemic, but signs of a slowdown have quickly emerged as the Fed embarks on its most aggressive interest rate hiking cycle in two decades to curb high inflation.

Should another financial crisis befall us, rendering a number of too-big-to-fail banks insolvent, the good news is that taxpayers will no longer be forced to bail them out.The bad news is that these large Wall Street banks can now legally bail themselves out internally (referred to as “bail-ins”) using depositor funds.Thanks to Dodd-Frank, if you happen to hold your money in a savings or checking account at a bank, and that bank collapses, it can legally freeze and confiscate your funds for purposes of maintaining its solvency."

So my question is this...One thing I never understood during the 07/08 housing collapse was what happened to RE investors who had a bunch of mortgages.

There could be all kinds of fire risks in there (think dryer vents full of lint that can still cause a fire even if sealed off), partial collapses, cracks, and other evils.

I have purchased and rehabbed 2 forecloses as an owner occupant for myself and rehabbed several homes in Atlanta before the sub prime collapse.

How are things in the city right now post-bridge collapse?

When the derivatives ponzi scheme collapsed, we saw huge drops, but there were no drops below the historical mean we would've had if the easy money were not there.

My wife, who I met after she bought her townhouse, bought in late 2007, so the value dropped considerably after the economy collapsed.  

Until now all the properties that I have owned have been buy, hold, and rent, and were either acquired during the economic collapse of 2007-09 as short sales, or through off market referral deals. 

Everything changed after the housing collapse though; as all the speculators were wiped out, and the new price points suddenly made a lot of sense for flippers and their new buyers.