August 2021 Home Price Report
- Home prices continued to slide in August as the economy cooled, and as the Fed hit the pause button on Quantitative Easing while allowing interest rates to rise.
- However, year-over-year growth is still similar to what was reported in the boom period of the last housing boom, in 2005.
No Easy Money, No Housing Price Boom
- Declines in home sales and sales totals have been largely blamed on rising interest rates
- The average 30-year fixed mortgage rate rose from 4.99 percent to 5.66 percent from August 4 to September 1, 2021
- In other words, the average mortgage rate in August was double what it had been in 2021, and this made mortgages more expensive with monthly payments considerably higher.
https://mises.org/wire/without-easy-money-fed-home-prices-will-keep-falling
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