Shiller: Housing Bubble Could Be Forming in Some Areas

Robert Shiller sees telltale signs of new bubbles forming in some of the former bubble markets. He mentions Phoenix and San Francisco as two notables. I see this as a side effect of the record low rates that the Fed is creating in the mortgage market. How did Janet Yellen put it: “It is conceivable that accommodative monetary policy could provide tinder for a buildup of leverage“. Yep, that’s it exactly. Video below

Source: Fox Business

bubbleHousinginterest ratesJanet Yellenmonetary policymortgagesRobert Shiller