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To: Kaiser8408a

This is HOW inflation comes down. Monetary policy works with long and variable lags. One of the channels through which it acts is in the mortgage market, slowing demand for housing, slowing price hikes.


2 posted on 05/29/2024 8:28:48 AM PDT by babble-on
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To: babble-on

“Monetary policy”

I scanned in old brokerage statements about a year ago. The pre-Obama interest rate hike was short-lived.

No sane person who can avoid doing so is going to take a massive financial hit because of a short-term interest rate spike.


4 posted on 05/29/2024 8:53:24 AM PDT by Brian Griffin
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To: babble-on

“Monetary policy”

There are lots of fairly young people that got rich in stocks like Amazon, Apple, etc.

Higher interest rates will only scare them into being willing to pay even more for houses.

The stock market has a huge valuation. Governments have promised huge pensions. The only way to fund those pensions is probably via the stock market, so the stock market will continue to be fed with tax dollars.

On the other hand, a nice area might only have ten million-dollar mansions up for sale.

Reality is what it is generally for substantial reasons.


8 posted on 05/29/2024 9:21:37 AM PDT by Brian Griffin
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