News for hackers. Stuff that matters.
Re:Is the Fed creating a housing bubble by keeping rates low? by closeparen on Tuesday August 31, 2021 @12:22AM (#28363949)
It's interesting that this topic becomes a source of populist rage, because the whole mechanism is that buyers are indifferent to principal vs. interest. The same cheap loans are available to you too. Interest rates are probably not driving your inability to afford a house.

I suppose you could be a cash buyer, whose cash was not previously exposed to real estate, hoping to get into it. But that's a pretty niche constituency.

Re:Is the Fed creating a housing bubble by keeping rates low? by angmarsbane on Tuesday August 31, 2021 @07:24AM (#28366464)
The way I view it is that low interest means I’m competing with how much the guy next to me is willing to borrow (how reckless he’s willing to be) not how much he can afford.
Re:Is the Fed creating a housing bubble by keeping rates low? by closeparen on Tuesday August 31, 2021 @12:23PM (#28369974)
Are you comparing this to some time in the past when people paid for houses outright? When was that time?

As far as I know housing has "always" been based on monthly earning power and not on accumulated savings.