The home price rise/ inflation post Covid is the real reason behind housing challenges and not mortgage rates. Someone should show this to POTUS and make him understand forcing fed to cut rates will only make it worse, as the lower mortgage will go towards the home price.
We may have to move sideways many years for the post COVID price rise to be digested.
Meanwhile labor shortages and tariffs on materials cause prices to increase. Small affordable homes are less profitable. So builders prefer larger more costly ones. Housing starts dwindle.
Reducing interest rates is one of the few choices.
How could we make Levittown sized homes more attractive to builders. They were affordable. Especially to returning veterans eager to settle down. VA loans helped.
Capping mortgage benefits at say $400k might work. Lots of inner city homes can be found at those prices. Might also reinvigorate urban renewal.
Are the chart prices in real or nominal dollars? It makes a big difference.
DB2
This will be controversial and may not be possible, but if the cities can force evacuation of 2 or 3 city blocks in downtown, completely demolish and build new modern housing, primarily multi-family types, and the ground floor for business, some hotels, and office/ medical properties, will create a new community. This will also fix many zoning issues. For suburban areas, fixing the zoning laws will open up lot of construction opportunities. You already have the schools, police, firestation, etc. Just increase the density.
I am all for reducing the size of the house. Unfortunately US builders don’t know how to be efficient with space. Rather they just build house 3/4 floors, because they build with so much space wasted.
This is so cute!! You should write comedy.
It is not going to happen. The default will raise market place yields.
Plus the wealth effect is about to disappear.
A statement that shows lack of understanding of outstanding mortgages, or the house price appreciation. People are sitting with < 3%, < 4% mortgages and over 30% to 50% home price appreciation. They will not default. They can always sell the house and make money.
PS: I know you are not interested in a discussion based on facts, but it all comes from your world is going to end tomorrow. So i will stop with this.
Perhaps you just need a suitable emoji for a quick response.
You are really out of it.
I am talking the federal government defaulting on the bonds.
I love how some folks make crazy statements about me when they are not thinking.
LMAO like a bad bunny?
Because you make crazy statements… There is absolutely no reason to believe US government is going to default on bonds. You continue to make these nonsensical statements and think you are some sort of sage.
Well, responding to you gives oxygen to these nonsensical statements.
The way things are handled today, there would be no reason at all for the USA to default on any treasury bonds. That’s because we don’t pay ANY of it in real money, all of it is refinanced, literally ALL of it, plus ALL the interest, plus an additional trillion or two of excess spending each year. NOTHING AT ALL is paid off, and none of the interest is paid, it is ALL refinanced. So why bother defaulting if you can simply create more bonds to use to pay them?
Guys,
We have $38 tr in debt. The debt is accummulating at over $2 tr per year. That is going to accelerate. The tax base is going to shrink. Mass unemployment is around the corner. Deflation will follow. Tax receipts will fall further.
If you do not know anything why are you here? This is an economics board. There is a long history of tariffs and economic meltdowns. We are not impervisious.
Things are all going wrong.
Trump at some point will declare we are not paying the interest. Then we are not paying the debt. Then we are cancelling the social programs.
If you have talked to a few conservatives you would know their common belief system. No social programs, no taxes, no debt.
When they cut FDIC your nest eggs are at full risk. If you see anything here as friendship this last comment is it.
@Kingran You are being clutzy. This market is going to eat you whole.
Yeap!!! See below, I am already taking massive losses this month, and trailing the market badly for the quarter… What a Fool, I am!!!
This has been urban renewal since World War II but certainly in St Louis first efforts go back to at least World War I. The buildings that served the steamboat era did not serve so well after turn of the century and the arrival of railroads.
The old buildings were cleared to make way for what became the Arch and for a plaza that ran all the way to Union Station.
After World War II they build tall multi story apartment buildings. In St. Louis Pruitt Igoe is the noted one. After 20 years or so crime was a problem. They were demolished.
We also did lots of renewal tearing old buildings down to make way for interstate highways.
Gentrification of classic old houses is also a factor. Some people resent the intrusions.
Now we seem to be doing better in the modern style you describe. More investment is needed. They look nice. Can you keep out crime? Do they bring jobs? Public transportation?
We recently had a tornado that went through one of the oldest black neighborhoods. Most had no insurance. Home been in the family for generations. And many–maybe half—vacant. How do you rebuild those. Why does school enrollment continue to fall.
A big problem with no obvious solutions. Send more money–lots more.
It is interesting to watch again and again and again.
The market giveth and the market taketh away.
We do have a Christmas rally right now. God bless you.
That and ten cents won’t show you the light.
