US Economic Trend Analysis Message Board

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Strategies & Market Trends : US Economic Trend Analysis

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To: gpowell who wrote (10)	8/19/2005 9:19:20 AM
From: GraceZ	Read Replies (1) of 97

I'll buy that. Housing prices also reflect inflation expectations. Most people expect to pay off their home mortgage with cheaper money in the future or higher future incomes (otherwise they wouldn't max out their borrowing) and/or that the house will be even more expensive for them in the future, thus even further out of reach. The first time you get the attitude that one needs to buy something today before it goes up in price reflects an expectation for inflation. Meanwhile with high tech goods you hear them say, "I'm waiting until the price comes down."

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