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We did a little bit in the 90s when interest rates increased, and I think the rate increase in the late 2000s was responsible for at least some of the drop in h
by omgwtfbyobbq 6y ago
We did a little bit in the 90s when interest rates increased, and I think the rate increase in the late 2000s was responsible for at least some of the drop in home values, although how much was obscured by the housing bubble, and low interest really acted like a multiplier there.
https://fred.stlouisfed.org/series/CASTHPI https://fred.stlouisfed.org/series/CASTHPI
https://fred.stlouisfed.org/series/FEDFUNDS https://fred.stlouisfed.org/series/FEDFUNDS
But you're right in the sense that we haven't seen the drop in home values (or any high capital asset) associated with the increase in interest rates of the 60s through 80s.
- jackcosgrove 6y agoThat's because interest rates having generally trended down from the mid-teens to zero in the past forty years. Unless we're willing to go negative, that cycle is coming to an end.
- omgwtfbyobbq 6y agoWe kinda have gone negative with QE, but yeah, interest rates are likely to come up sooner or later.