From AEI scholar Ed Pinto’s WSJ piece, “Is the Fed Blowing a New Housing Bubble?” today:
8: Over the last year, housing prices jumped 8%.
2: But incomes only rose 2% during this time period.
How are people affording bigger more expensive houses?
100: Mortgage interest rates are at the lowest level in 100 years.
The housing recovery is not a result of improved fundamentals in the economy. The Fed’s “easy money” policy is simply being capitalized into higher home prices.
Read Ed’s piece here.