![]() By tracking the amount required to buy the same house over time, it is a measure of house price inflation. The Case-Shiller Index uses the “sales pairs method,” comparing the sales price of a house to the price of the same house when it sold previously, and includes adjustments for home improvements. That’s the time frame we’re looking at here. The July data are a three-month moving average of closed sales that were entered into public records in April, May, and June. The mind-boggling price spikes in the charts below for individual metropolitan areas are based on the “July” Case-Shiller Index. The average 30-year fixed mortgage rate today was 3.16%. The 10-year Treasury yield is currently at 1.55%, the highest since mid-June. Long-term interest rates have started to rise. Markets have started to anticipate the end of QE. ![]() “Everything can occur much faster than it could have in the previous recovery,” he said. Louis, James Bullard, who’d been fretting months ago about the “threatening housing bubble,” came out with a proposal to reduce the assets on the Fed’s balance sheet right after the taper is completed by mid-2022, which would purposefully allow long-term interest rates, including mortgage rates, to rise significantly. Just today, the president of the Federal Reserve Bank of St. The Fed is getting seriously antsy about this massive house price inflation, on top to the regular consumer price inflation that has hit 30-year highs. But the national index of this raging mania doesn’t do justice to individual metropolitan areas, where price spikes reached up to 32%. House prices spiked 19.7% from a year ago, the biggest year-over-year increase in the data going back to 1987, according to the National Case-Shiller Home Price Index today. Housing Bubble 1 is starting to look cute in comparison. Even the Fed is getting antsy about this raging mania house-price inflation.
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