The Complete Failure of Owners' Equivalent Rent [View article]
"If home prices are going up, but rates are going down (like happened a few years ago), then the monthly payment for new buyers might actually be lower year over year! "
This has proven not to be true. If it were true, I wouldn't be feeding homeless people in the soup kitchen today. The home price increase wiped out any savings from lower interest rates on average.
It would be better if the CPI measured rents and home prices.
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"If home prices are going up, but rates are going down (like happened a few years ago), then the monthly payment for new buyers might actually be lower year over year! "
Aug 15 17:01 pm
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All Comments by hanson001 »The Complete Failure of Owners' Equivalent Rent [View article]
This has proven not to be true. If it were true, I wouldn't be feeding homeless people in the soup kitchen today. The home price increase wiped out any savings from lower interest rates on average.
It would be better if the CPI measured rents and home prices.