Yes, as rates go up home prices go down. Yes, the MBS buying program has been artificially suppressing rates. But apart from whether you’re a housing bull, bear or just an average joe looking for shelter, you should agree to the following:
The Fed shouldn’t be picking winners and losers. They have been messing with market cycles for too long for personal and political gain.
We need a revamp of the federal banking system, one with more clearly defined rules, more autonomy and more data driven policy.
Nearly all of us could see inflation from a mile away and yet the Fed could not?
It is scary to think that the institution that has the power to impact our lives so much is either filled with ignorant morons or is corrupt to the core.
Every time that they mess with the economic cycle to “stave off” a recession, they add immense risk to the next generation.
We now have a large population of people that have purchased homes as crazy prices. We have a large population that haven’t been able to afford a home. We have investors leveraged to the tits and families moving into their parents basements.
Don’t be fooled: there are demand and supply issues at play, but the primary culprit is the Federal bank and their policies.