Economics, U.S. Economy

3 numbers that show the Fed is inflating a new housing bubble

Image Credit: Shutterstock

Image Credit: Shutterstock

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.

2 thoughts on “3 numbers that show the Fed is inflating a new housing bubble

    • Not at all. It has learned to keep kicking the can down the road no matter the damage done to savers and investors. Let the other guys who come later deal with the problems when they are no longer able to ignore them.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>