As I observed earlier today, US home prices are skyrocketing due, in part, to the massively loose monetary policy. But if the housing market is on fire, why is The Federal Reserve continuing to support the mortgage market through Agency MBS purchases?
Home price growth is at the housing bubble peak of 2005-2007. But since 2008, monetary policy has been loose as a goose and drunk as a skunk.
Putting together in one (scary) chart …
Might as well go down to the nightclub since The Fed seems to be tone deaf on the inflation it is causing.
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