a thoughtful web.
Good ideas and conversation. No ads, no tracking.   Login or Take a Tour!
comment
snoodog  ·  2689 days ago  ·  link  ·    ·  parent  ·  post: The Dow's record highs mask deeper troubles

    How does inflation affect housing? Cause I'm asking for a friend . . .

Its good for cheaper housing bad for house prices. Reason being that most houses prices are driven by ability to make house payments. At 4% rates you can afford to buy significantly more house than say 8% because a fixed payment of 2k a month pays for a 600k house at 4% but only a 300k house at 8.

Lowering rates naturally drove house prices to the moon, raising rates will slowly cause them to come back to earth.