What was said around it
this sounds like an improvement, some experts believe that short-term this could actually cause home prices to spike back upwards as buyers scramble to lock in lower interest rates. Or, I guess, as the Realtor.com chief economist points out, the resulting boost to buyer demand could put upward pressure on home prices, offsetting some of the intended affordability relief. Or, I guess, put more simply, cheaper financing just allows prices to rise until the monthly payment reaches an equilibrium of supply and demand. And without a meaningful increase in supply, the end result is most likely just going to be slightly higher housing prices. In addition to that, it's also important to clarify that as of right now, this is not an ongoing injection of money like we saw back in 2020. Instead, it is a one-off short-term intervention. And as a result of that, it's unlikely to change builder behavior or materially increase housing production. Look, from my perspective, objectively, even though $200 billion seems like a lot of money, for context, the size of the entire mortgage back securities market is currently 11 trillion, and the Fed still holds $2 trillion of it on its balance sheet. This means
What a person said is shown in their own words and is never translated. The link goes to the exact second in the video.
