23 Mar Yun: How To Slow Down Rising Rates
The National Association of Realtors’ chief economist Lawrence Yun says there is a way to slow down the federal government’s past 2 hikes in interest rates in just 4 months. Yun says if more homes are built, this will taper inflation. The shortage of apartments and single-family homes is causing a housing shortage nationally. In a healthy real estate market, approximately 1.5 million new homes are added per year, considering new construction built as well as old construction demolished. From 2007 to 2016, roughly 900,000 new homes have been added per year, which according to Yun, is grossly inadequate. Home inventories are at their lowest levels since the 80s. Yun says that boosting homebuilding will create more inventory, slow down inflation and lessen the consumer price index, which will reduce the Fed’s hikes in interest rates. To read the full article, click here!