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Federal Reserve warns of "brewing U.S. housing bubble"

Economists say the pandemic housing boom is showing "signs of exuberance" akin to the boom of the early 2000s.

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Economists say the pandemic housing boom is showing "signs of exuberance" akin to the boom of the early 2000s.

Highlights

  • Federal Reserve Bank of Dallas says housing market is showing “signs of a brewing U.S.
  • housing bubble” Mortgage rates are at an average of 4.67% for a fixed 30-year loan for the week ended March 31.
  • The national median listing price for a home has jumped to a record $405,000, Realtor.com says.
  • But experts say the current price increases are unsustainable, but don’t necessarily signal a bubble.
  • The current exuberance measure is 115% higher than in 2006, according to the Dallas Fed.
  • The current housing bubble is “comparable to the run-up of the last housing boom,” they say.