The housing market is on fire. The Fed keeps adding gasoline

Despite surging home prices that are rising at the fastest pace on record, the Federal Reserve continues to prop up the housing market by purchasing $40 billion of mortgage bonds each month.And while the Fed is finally “talking about talking about” removing some of its support, some fear the US central bank is creating another housing bubble as it deliberates.That’s because the Fed’s emergency strategy is artificially lowering the cost of mortgages, and further boosting prices that already looked stretched in many markets.”The Fed just continues to pour more gasoline on that fire,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group.Of course, the central bank certainly deserves

→ Continue reading at CNN - Business News

More from author

Related posts


Latest posts

Hong Kong court denies bail to Apple Daily’s editor, publisher

Chloe Lo | BloombergThe editor and publisher of the Apple Daily newspaper were arraigned Saturday on charges under Hong Kong’s sweeping national security law....

How to Keep Your Audience Supplied, So Your Company is in Demand

June 19, 2021 5 min read Opinions expressed by Entrepreneur contributors are their own. Though we...

20 Rescued, 15 Injured in SF Apartment Fire

San Francisco 20 Rescued, 15 Injured in SF Apartment Fire ...