Is The Value Of Your Home Going To Fall As Rates Rise? 6
To conclude our discussion on mortgage rates, house prices & epiphenomena, let’s consider the Fed’s role, or lack of one, in the housing market.
Is The Value Of Your Home Going To Fall As Rates Rise? 5
The 1st Gulf War and its effect on oil prices is a good parallel to mistaking mortgage rates for house prices. While connected, they aren’t the same thing!
Is The Value Of Your Home Going To Fall As Rates Rise? 4
Real estate is its own market, subject to its own forces of supply and demand. Thinking that interest rates are the only factor driving prices is too reductive!
Is The Value Of Your Home Going To Fall As Rates Rise? 3
High mortgage rates don’t necessarily lead to lower house prices because high rates themselves are indicative of a bull market in housing! Here’s why.
Is The Value Of Your Home Going To Fall As Rates Rise? 2
A quick check of the correlation between home prices and 30y mortgage rates shows that it constantly changes. Simply put, homes aren’t 30y bonds. Here’s why.
Is The Value Of Your Home Going To Fall As Rates Rise? 1
30y mortgage rates in the US have risen sharply to ~4%, giving rise to concern that home values will fall. Are these claims and concerns valid?
Is The Fed To Blame For High House Prices? 4
US banks have been offloading their mortgages to the GSEs, with the pace of selling accelerating over the last 6 months. What could this mean?
Is The Fed To Blame For High House Prices? 3
Even as US housing prices fuels talk of another housing bubble, banks are making mortgages but are unwilling to hold on to them. What are the implications?
Is The Fed To Blame For High House Prices? 2
Central bank intervention or bank lending, which is responsible for the red hot US housing market? If both have a role to play, then which is the main driver?
Is The Fed To Blame For High House Prices? 1
US housing continues to make new highs. Many blame the Fed’s QE and low rate policies for it, but, how much does QE actually affect the housing market?
