If as many posit the Federal Reserve has an unstated mandate to generate a "wealth effect" by propping up housing, they've managed to create a no-win situation. As longtime correspondent K.M. recently documented, roughly half of the 50+ million home mortgages in the US were refinanced in 2020 and 2021 to lock in historically low interest rates of less than 4%, with many around 3%.
The Housing Bubble: Owners Trapped by Low-Rate Mortgages, Buyers Thwarted by High-Rate Mortgages
| Source: | Of Two Minds |
| Published: | Apr 23, 2023 |
| Author: | Charles Hugh Smith |
| Post Date: | 2023-04-23 01:31:04 by Charles_Byrd |
| Views: | 189 |