Source: Iacono Research
Some people look at me funny when I say that Real Estate is one of the few bright spots in the economy, but that its mostly inorganic.
Tim Iacono, who does a masterful job explaining how extraordinary these Fed driven mortgage rates are. The 40 year average is 8.7%, the 20 year average is 6.5%, and current 30 year rates are 3.3%.
The chart above is from a post of his — the change just over the past year or so is a ~15% increase in buying power for mortgage users from $240k to $280k on the same $1100 per month.
How Fed Policy Distorts Home Prices
Iacono Research 12/05/2012 http://iaconoresearch.com/2012/12/05/how-fed-policy-distorts-home-prices/
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.