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One could say that people still need a place to live regardless of the interest rate. If average people can't afford the interest rates my parents were paying
by UncleEntity 3y ago
One could say that people still need a place to live regardless of the interest rate.
If average people can't afford the interest rates my parents were paying back in the '70s and the people who can afford these rates -- because they can get a reasonable ROI through something like AirBnB -- are still buying up the supply of 'excess' homes then it could be argued that the Fed's meddling is ineffective.
- patrick451 3y agoSo your contention is that ZIRP had zero impact on the run up in prices over the last few years?
- UncleEntity 3y agoNot at all, the Fed's meddling could easily be blamed for that too.
- mitthrowaway2 3y agoIt stands to reason, then, that a low interest rate now would potentially drive an even bigger bubble in the future. A high interest rate now might not solve housing affordability today, but it could perhaps stabilize things farther down the road.