It has to do with artificially low interest rates. The Fed should have been bumping them up years ago, forcing liquidity into other parts of the system. It wo

It has to do with artificially low interest rates. The Fed should have been bumping them up years ago, forcing liquidity into other parts of the system. It would be better if there was a more natural way to set rates. Also - it has to do with perpetually extending our visibility into our economic future, i.e. as loan times get longer and longer - the lenders win as housing prices go up. If everyone had the same term mortgage, and it was fixed - this issue would not cause problems for for housing inflation. But as we go collectively from 25 years to 50 years to 75 years ... well, housing prices go up.