Low interest rates perpetuate the bubble as well. Especially for those who look at the mortgage based on a monthly amount (lets assume 2500 a month, 10% down, 30 years). At 6% interest you can afford slightly under 390k, while at 2% you can afford close to 590k. 10% interest puts you at 270k. Ideally we would want sound money to return with private businesses competing on interest without any gov involvement.
Low interest rates perpetuate the bubble as well. Especially for those who look at the mortgage based on a monthly amount (lets assume 2500 a month, 10% down, 30 years). At 6% interest you can afford slightly under 390k, while at 2% you can afford close to 590k. 10% interest puts you at 270k. Ideally we would want sound money to return with private businesses competing on interest without any gov involvement.
It's not counterintuitive at all when you realize that China is buying them.