Real Estate Bubble?
I cant remember when there was so much hype over one section of the economy just because its doing so good and there appears to be no end in sight.Its my opinion that everyone needs a place to live, be it a mansion or a doublewide. As long as there is employment and consumers are working steady, there will be a demand for housing. Just look at the housing starts for April 2005, up 11%. In the United States there is a shortage of housing, the single driving force behind the so called bubble is the age old unwritten law of supply and demand.
Interest rates have baffeled me, in past cycles, when the fed raised rates there was usually an equal, if not more adjustment in long term rates. I would welcome input from my readers on why interest rates have remained low, and in some cases (this week for instance) rates have dropped after the fed raised the rate by a quarter.
posted by William Hobbs @ 8:33 AM
8 Comments:
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