Re:Mortgage Rates Could Tank Home Prices by 20%, Fed Study F...
by Rury on Wednesday November 16, 2022 @08:43PM
(#33633838)
Depends on if you mean in real terms, or nominal terms.
In nominal terms, guaranteed it will tank home prices, if given enough time. This is because trade involves two items, and it's entirely possible to make dollars more scarce than houses. I mean for hyperbole, it'd be impossible to sell a house for 300k+ dollars, if there was only 2 dollars in existence in the entirety of the world. Again, that was hyperbole, but the Fed raising interest rates and reducing their balance sheet, literally work to remove money from existence, and works to move us closer to that regard.
In nominal terms, guaranteed it will tank home prices, if given enough time. This is because trade involves two items, and it's entirely possible to make dollars more scarce than houses. I mean for hyperbole, it'd be impossible to sell a house for 300k+ dollars, if there was only 2 dollars in existence in the entirety of the world. Again, that was hyperbole, but the Fed raising interest rates and reducing their balance sheet, literally work to remove money from existence, and works to move us closer to that regard.
But as for real terms, that's another matter...