One of the effects of the Feds near zero interest-rate policy has been the recovery of the housing market. After the financial crisis of 2008, the real estate market first plateaued and now it’s entering another housing bubble.
The only reason that the prices have gone up since 2008 is because of the low interest-rates. These historically low interest-rate mean that people can afford to pay more for a house based on their income. The challenge is that there has been very little increase in the average Americans annual income since 2008.
The rise in house prices has been due to the historically low interest-rates and not due to a rise in income to support bigger mortgages.
The real issue is going to present itself when the interest rates go up and no one can afford to buy the house because there has been no increase in their income.