Home Prices vs. Home Values
By Charles Vollum, BIG GOLD On June 3, Standard and Poor’s issued the latest update to its Case-Shiller Home Price series. The press release begins, “Data through March 2011 … show that the U.S....
View ArticleReal Mortgage Rates
What is the Real Mortgage Rate? At InflationData we are constantly talking about “real rates” typically by that we mean the inflation adjusted price. For instance we publish the inflation adjusted...
View ArticleHousing Prices and Inflation
Average Housing Prices- By Jared Diamond The great recession of 2008 has been a source of enormous anxiety in the financial world. The American economy survived a total meltdown, but just barely. As...
View Article30 Year Fixed Rate Mortgages, Nope Not at 3.25%!
Fixed Rate Mortgages- So is it true 30 year fixed rate mortgages are at 3.25%? Well that depends on how you look at. The answer is yes if you willing to invest discount points to purchase your interest...
View ArticleAustralia- Iron Ore, Housing and Unemployment
Speculation Mounts Over RBA October Meeting As the RBA heads towards it October meeting, there are a number of important issues on the agenda. The price of iron ore which was one of the major topics of...
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Inflation and Housing Prices
Being “real tangible assets,” houses tend to act as inflation hedges. But in recent times they have appreciated by multiples of the inflation rate. This is due more to loose lending practices that to...
View ArticleThe Housing Bubble Revisited
What really makes a bubble? Are bursting bubbles inflationary or deflationary? What lessons can we learn from history? In this article Justice Litle addresses these issues. ~Tim McMahon, editor By...
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How Much Has Inflation Affected Mortgage Rates in the Last 5 Years?
In some ways, mortgage rates are a reflection of the overall health of the American economy. As we can see in the chart below from “FreddieMac“, often both mortgage rates and inflation rates peak...
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Ways Inflation Affects the Real Estate Market
Inflation from January 2007 through December 2016 was extremely low, averaging only 1.77% per year in the U.S. and 2009 was actually negative (i.e. falling prices = deflation). Although 2017 has seen a...
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Ways Inflation Affects the Real Estate Market Pt. 2
In Part 1 of this series on Real Estate and Inflation, we discussed how monetary inflation creates price inflation which affects materials costs, creates a shift into rentals and a surge in...
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Do Housing Prices Always Go Up?
In the last few years, housing prices have skyrocketed, and investors are once again jumping on the housing bandwagon as an excellent way to make money. The same sentiment existed in the early 2000s as...
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Inflation Adjusted Mortgage Rates
The interesting thing about borrowing money long-term is that inflation actually helps you repay the loan with cheaper money… At 7% inflation, prices double roughly every 10 years, which is only 1/3rd...
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Navigating High Inflation: Should You Buy, Sell, or Hold Off on Real Estate?
It’s no secret that inflation is high nowadays. While the rate of inflation is significantly lower today than it was in 2022, it’s still sitting at about 3%; which is higher than the FED’s stated goal...
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