4 ms·
Right but in that case the housing price and not the interest rate is the problem, isn’t it? Housing prices: record high Interest rate: pretty moderate Probl
by ethanbond 3y ago
Right but in that case the housing price and not the interest rate is the problem, isn’t it?
Housing prices: record high
Interest rate: pretty moderate
Problem: the pretty moderate thing?
The solution to either of these problems is different. Answer to high housing prices: build more. Answer to high interest: lower interest, which then inflates housing prices, which without more building means just more people priced out.
The issue is prices which is an issue with supply.
- darth_avocado 3y agoI agree but with a caveat. My original comment (the parent on this thread) was about supply. Ideally moderate interest rates are not a problem, but when you get there by aggressively hiking the rates after a decade of low rates, it becomes a problem. Mostly because anyone who didn’t benefit from the environment (90+% of the population), will have a hard time catching up even with moderate rates.