Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

"But empirically, we find that home values are nowhere near as sensitive to interest rates as the user cost model predicts. This lower sensitivity is also found in prior economic research. Thus, the historical experience suggests that lower interest rates can only account for a tiny fraction of the pandemic house price boom. Instead, we find more scope for lower interest rates to explain the rise in housing activity, both sales and construction."

https://libertystreeteconomics.newyorkfed.org/2021/09/the-housing-boom-and-the-decline-in-mortgage-rates/