housing

Is Real Fed Funds Rate Peaking?

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Q2 GDP growth was revised higher from 4.1% to 4.2% even though the estimate for real consumption growth was revised lower from 4% to 3.8%. That being said, the consumer had a strong rebound from Q1 and still drove GDP growth to an amazing result. The obvious question is whether…CONTINUE READING

US Housing Is Becoming Unaffordable

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We’ve discussed the price to income ratio of housing in a previous article. This gave us an idea of how expensive housing has become. We’ll discuss some of best points why real estate is too expensive and then provide the counterpoint explaining why housing isn’t in a bubble. Housing Isn’t…CONTINUE READING

Buying/Renting Home vs Investing In Stocks

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The conventional wisdom during the baby boom generation was that buying a house was a ticket to financial freedom. Because policy makers believed in this concept, since the late 90s there was an aggressive attempt to get people into homes they couldn’t afford. Obviously, over leveraging yourself with the purchase…CONTINUE READING

Housing: There’s Good News & Bad News

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For your reference, we’ve discussed housing in previous articles: What Comes Next For Housing Prices/Rent? The New Trend In Housing The Future of US Housing Market Is US Housing In A Bubble, Again? As mentioned previously, the United States has been experiencing a decline in the homeownership rate. It’s important to…CONTINUE READING

Student Loans Are Not Like Housing Bubble

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It’s widely known that the financial sector has become more centralized because of the mergers between some of the banks and other financial institutions during the financial crisis something we discussed in depth in Are Too Big To Fail Banks Safe?. For example, Bank of America acquired Merrill Lynch and…CONTINUE READING

What Comes Next For Housing Prices/Rent?

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Home Equity Is Recovering We’ve previously examined housing related debt in the Q3 report on consumer debt. As we discussed, the housing market took a few years to recover yet the total housing debt consumers have is still below the previous peak. The home ownership rate is only now starting…CONTINUE READING