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But that was true before the rate hikes and yet the Fed still wasn't happy with the housing supply. There aren't more people dying and going through a divorce n
by thr0wawayf00 4y ago
But that was true before the rate hikes and yet the Fed still wasn't happy with the housing supply. There aren't more people dying and going through a divorce now that we've gotten the .75% hike.
- foogazi 4y ago> and yet the Fed still wasn't happy with the housing supply. Why would this be a Fed concern at all ? At most they can affect the demand side
- thr0wawayf00 4y agoFrom the article: "It's clear that Powell hopes the housing cooldown caused by rising mortgage rates will help to push inventory levels up. " The Fed wants housing prices to fall and is hoping this will bolster housing supply in the short term since building inventory takes a lot of time.
- ianai 4y agoA quick google will give you an idea of why people decide to sell their houses. It's generally got nothing to do with interest rates and everything to do with personal factors and a huge seasonality factor. People prefer to sell in the summer, and sellers make the worst returns in the winter months.