3 ms·
Absolutely agree. The challenge is that increasing rates did nothing for e.g. home affordability. In fact, by increasing rates they caused builders to abandon
by r00fus 4y ago
Absolutely agree. The challenge is that increasing rates did nothing for e.g. home affordability. In fact, by increasing rates they caused builders to abandon some projects because they couldn't get funding.
To do that, it would require congress to actually legislate or the exec branch to issue some executive orders that addressed market conditions like price gouging other than the big interest rates switch.
ZIRP was a horrible policy and I'm glad it's not being continued.
- adam_arthur 4y agoHome prices are in decline, and new home construction (SFH + MFH) is at an all time high (though dipped a bit recently). Rents are actually in deflation mode the past few months. If rates stay high, home prices will fall, absolutely. Unemployment will rise too. Agreed that congress can do more to help though. Incentives are poorly structured to promote housing affordability.
- riku_iki 4y ago> new home construction (SFH + MFH) is at an all time high it doesn't look like that: https://fred.stlouisfed.org/series/HOUST https://fred.stlouisfed.org/series/HOUST