As I discussed yesterday, the Biden Administration is seeing an unprecedented surge in government spending under the auspices of fighting Covid. The Federal Reserve has responded to Covid by increasing their asset purchases to near $8 trillion. And with the ever-increasing asset purchases by the Federal Reserve, national home price indices and commercial real estate prices have soared.
Of course, mortgage interest rates have fallen pre-financial crisis levels over around 6.5% to 2.67% … until just recently when rates flared to 2.97%.
As I discussed in yesterday’s post “Stimulypto,” the US economy is red-hot (GDP growing at over twice the normal level) despite government shutdowns of state and local economies.