Reply to Does anybody have a grip on the housing market?

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Reply to "Does anybody have a grip on the housing market?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I wonder, if interest rates never surged up last year, what would have happened to prices? I think, without the surge, the prices would have shortly reached their natural peak, and things would be much better than they are now. [/quote]

The issue is that the prices are too high now.[b] The Fed should have raised interest rates in early 2021 to curb prices.[/b] They claimed that inflation was transitory so they ignored it. Well you know what else can be transitory? Interest rates. [/quote]

so much this.  however we only really know this in retrospect.  :([/quote]

I think you're being overly kind here. Home values started spiking in 2020, and had been climbing prior to that. By 2021, home prices were already out of control. The Fed had enough information to raise the rates in early 2021, latest. If home values started going down then they could have lowered the rates again. Enabling 2.5 - 3% interest rates was stupid and they had the data to know that.[/quote]

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