Yahoo Finance, May 6, 2024, Return To The ’70s? Today’s Housing Market Has Echoes Of Dark Era.
High inflation and a disappointing report on economic growth — followed by a sudden drop in stocks late last month — made for a familiar economic combination.
These conditions were hallmarks of the 1970s, when inflation ran high, leading the Federal Reserve to hike interest rates. The central bank’s measures to tame inflation drove up borrowing costs for real estate developers and ultimately shrunk homebuyers’ purchasing power.
