What if REAL mortgage rates were based on real estate inflation rates? How about -13.815%? – Plant monitoring


by confoundedinterest17

REAL mortgage rates, defined as the Freddie Mac 30-year rate WITHOUT alternative measures of inflation, vary from -1.189% (based on today’s PCE deflator YoY) to -13.815% (based on the largest asset in a household’s portfolio, the house, that is the case-Shiller national house price index YoY).

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Then we have the REAL mortgage rate based on the Dallas Fed’s trimmed mean of the 1-year PCE at 1.07%.

As you wish. However, it makes sense to use household perceived inflation in relation to housing rather than the suppressed inflation measures used by the Federal Reserve.






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