Why the government took home prices out of its main inflation index

Re:Why the government took home prices out of its main infla... by mtoner23 on Friday May 27, 2022 @12:28PM (#31531452)

the 30 year mortgage was one of the greatest financial innovations of our time. Allowing anyone to pay off 2022 costs in 2052 dollars. I understanding hating credit card debt, buy now pay later, and other horrible "financial engineering" but the 30 year mortgage is overall a great thing for everyday people.

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Re:Why the government took home prices out of its main infla... by jdashg on Saturday May 28, 2022 @05:01AM (#31538781)

If everyone gets the benefit, does anyone really get the benefit? In a zero-sum game of prospective home owners bidding against eachother, if both of two opponents the option of longer mortgages, does affordability actually increase? The sticker price just gets bigger.

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Re:Why the government took home prices out of its main infla... by faangiq on Saturday May 28, 2022 @10:27PM (#31545718)

Well, now you have a layer of banks collecting interest on what was previously a cash purchase at 1/100 the price. So, yes, someone is winning this game.

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Re:Why the government took home prices out of its main infla... by mtoner23 on Thursday June 02, 2022 @01:37PM (#31598063)

Markets are not zero sum!

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