Davidlee199 said:
I don?t understand why people kept saying home prices keep going up and never discussed the cause to the 2021 housing boom. It was the Federal Reserve $120 billion bond buying each month since March 2020. It announced 11/3 last week it would slow bond purchases and stop buying bond around June 2022. According to a Forbes article, ? Recently long-term treasury bond yields increased, and mortgage rates will gradually adjust in line with treasuries. If the Federal Reserve stops buying securities every month?which they are likely to do next year?then homes purchased today could be worth 30% less in two years? time.?
I wish that would be the case.
Why do you think the inventory is so low?
For the past year and a half, homeowners have refied and locked into an all time low 2 % ish rate long term, like 20 years or 30. New buyers also enjoying those low rate, abeit higher prices. The demographic shift is now retire in place and die in place. Two or more generation under one roof. The lack of inventory going forward would likely keep prices elevated throughout majority of the metro area of the U.S. It could adjust dramatically if rate hit 7 or 8%. But where the direction of the FED going, they can't even raise 50 basis point before FED Chair take a big dump and pulling out any stop and raise the white flag again.
