Biden’s team will tell you that lowered inflation for two or three quarters means that inflation is over, but that high unemployment and low growth for two or three quarters doesn’t mean that a recession has started.

Yes. During the Carter years owning a home was a hedge against inflation. It’s the same today. However, the demand for homes has outstripped the supply. Two main reasons.
1. No one is selling who has a low interest rate mortgage. Selling and exchanging a 3% mortgage rate for a 6-7% mortgage rate is a losing proposition unless you’re sure you can re-fiancé at a much lower rate very soon.

2. Here in Washington state, we have a “Growth Management Act.” This legislation was passed in the 1990s. The purpose was to force people to build on smaller lots closer to urban centers, and force people out of their cars. It has not forced people out of their cars, 🙂 but it has forced the costs of building homes up considerably. 🙁

Twenty-five years ago, it took about a month and maybe $300 dollars to get the permits to build a new home. Today, that runs two years and $25,000. So, it appears that developers here are not producing enough new homes to meet the demand.

When interest rates come down, no one knows what’s going to happen, but realtors are expecting a lot more inventory. Whether that will result in prices moderating, is any one’s guess. For first time home buyers it would help their situation. With lower interest rates they could qualify for a higher price than the can with the present rates.

Home ownership is the bulwark of the American dream. Somehow, we need to keep it available to young families.

Plus the Biden Administration is doing everything in its power to keep the price of gas down before the election.

I’d have to take issue with that sentiment.

(Kinda like sayin’ “Muhammad Atta and his pals had no idea of how to land a plane…”)

Would be more accurate to say, “Biden and his advisers have no idea of how to effectively perfume their meticulously—and lovingly—cultivated mega-inflationary pig…” (with profuse apologies to pigs…).

…IOW how to effectively COVER UP that their Neo-Marxist Nirvana is actually Hell on Earth (or getting there “gradually then suddenly”…)

File under: Why can’t those darn rubes understand the paradise we’re creating for ‘em???

As the article states, this has lowered the inflation number by several % points. So instead of 7%– using more historical methods the inflation would be about 11%.

Why Has the Inflation Calculation Changed Over Time?
https://www.nytimes.com/2022/05/24/technology/inflation-measure-cpi-accuracy.html

That the government is using statistical tricks to lie to us is not in question, any more than Clinton’s little budget trick to “balance the budget” by “paying off the deficit using a credit card”, in essence, was valid.

They’re lying assholes, and anyone who isn’t a total partisan hack knows this, just from going to the supermarket.

There’s a meme floating around about the purchases made by Kevin, in Home Alone, at the supermarket.

They were supposedly about $12 bucks in 1990. They were about $44 bucks last year. They are $77 this year. And the year ain’t over yet…

I haven’t verified the meme, but it sounds about right.

What about housing prices?…how should mortgage interest rates be factored in?

Very difficult work.