Home Prices Plateauing, Rents Catching Up

Home Prices Plateauing, Rents Catching Up

September 06, 2022

The housing sector surged during COVID in large part due to loose money.  The Federal Reserve kept short-term rates artificially low and the M2 measure of the money supply soared.  Now, with rising short-term rates and slower growth in M2 sending mortgage rates higher, the housing sector has a bad case of indigestion.  Sales are down, construction is down, and the most recent reports on home prices show a sudden and sharp deceleration.

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