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by AddingValue
1304 days ago
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That is a good comment. So what can be learned? The resume could either be: 1) state needs to make speculation on water, food, medicine, energy illegal or tax it highly (well that usually does not work says Panama) 2) set "maximum" prices
(A very socialist thing... also not so great as it hinders investments) 3) US & EU & Asia & EVERYONE gov NEED to buy up at least 30% of all real estate (at the price it was before the bubble) and gurantee their citizens a fair rent & energy & heating. Guesd option 3 would be best solution. |
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One of them would be for the Fed to not keep interest rates artificially low. When money is cheap, speculation flourishes. When mortgage rates are at 7%, fewer people would get in the flipping house business. And 7% is still unnaturally low.
The St Louis Fed maintains lots of interesting historical time series, and one of them is the average 30 year mortgage rate [1]. It goes back to 1971. Before 2001 mortgage rates were always above 7%. Well, not always, but 99% of the time, and about 50% of the time they were above 10%. After 2010, rated were below 5%, and after Covid even before 3%.
[1] https://fred.stlouisfed.org/series/MORTGAGE30US