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508

Do all those ARM's blow up the economy?

Do house prices fall, lowering taxes, which fucks City/County/State budgets?

ELI5, what would a 1-2% raise in the interest rates do to US housing?

Do all those ARM's blow up the economy? Do house prices fall, lowering taxes, which fucks City/County/State budgets? ELI5, what would a 1-2% raise in the interest rates do to US housing?

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Houses get cheaper.

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Do they? A new variable is all that delicious fed bux given to Blackrock. Wouldn't the institutional investors just hoover up inventory, keeping prices elevated?

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Sure they buy them, but for what? Noone is going to buy from them, or even afford the rent to them unless Blackrock subsidizes the rent and gives renters free money basically, which they won't do.

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When you have free fed bux, do you really care about renting? Not sure I'm convinced.