The Federal Reserve continued to increase its holdings of mortgage-backed securities by the tune of $40 billion per month, fueling a housing bubble with record-low mortgage rates and low inventory.
Even as the housing sector has more than recovered from the downturn, Chair Jerome Powell continues pedal to the metal with MBS purchases. According to the National Association of Realtors (NAR), this has resulted in the median price for a single-family home to soar the most on record in the first quarter.
“Nationally, the median existing-home sales price rose 16.2% on a year-over-year basis to $319,200, a record high since 1989. All regions recorded double-digit year-over-year price growth, with the Northeast seeing a 22.1% increase, followed by the West (18.0%), South (15.0%), and Midwest (14.4%),” NAR said.
https://www.zerohedge.com/markets/home-prices-soar-most-record-fed-continues-bubble-blowing-policies
They are creating a financial disaster.
Also, this morning, Varney said the Biden admin was pressuring banks to start issuing credit cards to people with low or no credit ratings.
What could go wrong?