Rising interest rates are not wrecking the housing recovery; what’s wrecking the recovery is that house prices are rising faster than the ability of people to afford them. Maybe we thought we could cheat history, and that a housing recovery would bring about an economic recovery. That can’t happen. The housing recovery can’t start until the economic recovery begins.
Unfortunately, the economic recovery is overblown; in fact, the economy is stagnant, and there’s no evidence of any progress despite years of stimulus by the Federal Reserve.
Similarly, the housing recovery was an illusion: the best housing stock has gone to large private investors, not individual homeowners.
via The Guardian
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