Last month, the Fed signaled they may decrease interest rates fewer times than expected in 2025. The reason they gave? Because they believe “events” may create unanticipated price pressure.
Major part of housing shortage has to do with the “no build” that happened after 2008. For 5 years a low amount of houses were built because banks had a “we are not doing those loans again?!” stance. Makes sense, but in the mean time rates were low, land was cheap and construction worker unemployment was over 20% at times in an era when the iPhone came out and changed the world. A missed opportunity that we are still paying a steep price for - literally
Major part of housing shortage has to do with the “no build” that happened after 2008. For 5 years a low amount of houses were built because banks had a “we are not doing those loans again?!” stance. Makes sense, but in the mean time rates were low, land was cheap and construction worker unemployment was over 20% at times in an era when the iPhone came out and changed the world. A missed opportunity that we are still paying a steep price for - literally