> When house prices go up, this measure goes up by a similar measure.
That’s only true if you assume interest rates aren’t falling. Artificially low interest rates have inflated the actual price of housing while keeping monthly payments fairly steady.
The Fed is then able to say “look, no inflation!” despite actual prices rising very rapidly.
That’s only true if you assume interest rates aren’t falling. Artificially low interest rates have inflated the actual price of housing while keeping monthly payments fairly steady.
The Fed is then able to say “look, no inflation!” despite actual prices rising very rapidly.