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Will Bernanke Tank Housing?

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Will Bernanke tank housing?

Market has gone from boom to gloom, another rate hike would hurt it more

Ouch. It's getting harder and harder for real estate agents to put a happy face on the market. Sales are slowing, prices are falling, and the backlog of unsold homes is rising fast. And now it's suddenly looking like the Federal Reserve will raise interest rates again.
"So Mr. Bernanke is 'monitoring,' all right," Rosenberg wrote in a report on June 7. "He's monitoring the collapse of the housing market, and by the sounds of it he wants to reinforce the bear market already under way."
Most economists don't think Bernanke is actually trying to reinforce a bear market in housing, but they do say that the market has turned decidedly bearish. Richard DeKaser, chief economist of National City in Cleveland, calculates that over the six months through April, median sales prices have fallen at a 4.4 percent annual rate for new homes and at a 5.6 percent annual rate for existing homes. (To do that calculation, DeKaser had to make his own seasonal adjustment to the numbers. As reported, the data show only year-over-year price changes, which are still positive.)

Continued HPI will lead to more inflation. The way to stop inflation is to stop that which is most responsible for it: HPI. TTRTRates.

Edited by Realistbear

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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