Housing

Short Answer: In the near term, it makes buying a house more expensive. In the longer term, to the extent that raising interest rates “slows the economy” faster than otherwise would be the case, it could assist in bringing home prices down. Long Answer: Housing has undoubtedly been a victim of Federal Reserve policy in that the expanding money supply via the banking system has fed through directly to higher housing prices. We’re now at the point where affordability is a serious problem for most. Lower rates helped to offset rising prices, but we’ve reached the point - certainly with…