Home Price Inflation

Powell Inflating the Housing Market with Fed MBS Purchases

Pinocchio Powell has no answer as to why the Federal Reserve is still inflating the housing market with MBS purchases to the tune of $40 billion per month. Despite a ridiculously overheated housing market with no inventory and double-digit price increases the Federal Reserve is going to continue the purchase of mortgage-backed-securities.  The latest FOMC statement and press conference just confirmed more of the same from the Powell Fed. "Overall financial conditions remain accommodative, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses. The path [...]

North Texas Housing Inflation Much Worse Than Official Statistics

Housing inflation in North Texas is much worse than official statistics would have you believe. This is a feature, not a bug of the financial system we live in. The Federal Reserve's preferred measure of housing inflation, owners' equivalent rent, is a comical joke which is purposely used to provide the appearance of tame, measured inflation in the U.S. economy. Many government officials use the official CPI measure of housing inflation despite its inherent flaws in capturing actual home price inflation experienced by consumers and home buyers. The CPI measure of owners equivalent rent is [...]

By |2022-08-06T13:25:35+00:00January 4th, 2021|Denton County Real Estate|0 Comments

Zero-Down Mortgages Return With New Names

Surprise! Zero-down mortgages are back! Just when you thought we had learned the lessons of the subprime mortgage meltdown nearly a decade ago, along come new twists on an old formula. The recipe is pretty simple, and the inevitable outcomes are fairly predictable, yet that won't deter some people from making irrational decisions when it comes to the fear of missing out (FOMO). The latest strategies to put cash-strapped buyers into homes they probably can't afford are similar to crowdfunding. HomeFundMe is an example of one such program where buyers can solicit donations for a [...]

Go to Top