Reply To: Traders Market Weekly: MAR19-25 — Some Sheep may be Sheared

Helmholtz Watson

Fed’s Waller: He’s looking closely at real estate to judge appropriate stance

He’s watching whether sharp, ongoing increase in home prices poses financial stability risks
Rising cost of rent has implications for monetary policy
Fed’s purchases of MBS reduced mortgage rates by 40 bps
Home buying has grown less affordable
Demand for houses is up, supply is constrained
Home price rise isn’t fueled by excessive leverage and easy lending