The problem are the low interest rates. We need to raise interest rates to lower asset prices. Not just homes but all asset prices need to come down dramatically. Interest rates should be at 15%.
You would completely kill the housing market going to 15%. That would put a 300k house which is barely starter home price 30 year mortgage at over 3500 a month. If you go up to the average home price of 512k you’re looking at roughly 6k a month. Unless labor wages magically unfuck themselves for decades of losses there’s no way it brings prices down over completely crashing the market.
The problem are the low interest rates. We need to raise interest rates to lower asset prices. Not just homes but all asset prices need to come down dramatically. Interest rates should be at 15%.
I thin k 15% is too low. The 4 trillion that Biden pumped into the economy needs to come back out, and high interest rates is the only way to do that.
You would completely kill the housing market going to 15%. That would put a 300k house which is barely starter home price 30 year mortgage at over 3500 a month. If you go up to the average home price of 512k you’re looking at roughly 6k a month. Unless labor wages magically unfuck themselves for decades of losses there’s no way it brings prices down over completely crashing the market.
You're probably right but 15% would be a good start.