The perfect storm of government MBS purchases and sub-3% mortgages through ZIRP in 2021 combined to rocket housing values by 50%.
Housing reached record low affordability a year later, falling to 17.22%.
Yeah, let's do more of that.
Back in the 1990s, before Bill Clinton and the Uniparty got a hold of it
and turned it into a commodity, housing was stable and affordable as
median income bought 25% of a home.
Trump hasn't gotta clue what to do.
Mortgage rates drop to lowest level in nearly 3 years as Trump orders buying of $200 billion in mortgage bonds
... In the first two months of the Covid pandemic, as markets reeled,
the Federal Reserve purchased $580 billion in agency MBS. It then
continued buying more throughout the year. From March 2020 through June
2021, the Federal Reserve increased its agency MBS holdings from $1.4
trillion to $2.3 trillion, according to the Dallas Fed.
The
Federal Reserve also lowered its own lending rate to zero. The
combination brought the average rate on the 30-year fixed mortgage to
record lows, hitting just 2.75% at the start of 2021, according to
Mortgage News Daily. ...
... But Zelman also points out that in the broader home market it’s not
just the mortgage rate, but overall affordability that is keeping buyers
sidelined. Consumers are stretched, and home prices are close to 50%
higher than they were pre-pandemic, ironically because of those
record-low mortgage rates brought on by MBS purchases. ...