With everybody being thrown out of their homes rentals is shooting up, which means rent price is going up. Rent price is a sizable component of the cpi and its the very reason it is going up lately
The fed isnt going to cut until there is a real liquidty crisis. That doesn't seem to be the case. They made a huge mistake stopping rate hikes in May of last year.
I read yesterday that home rental vacancies are also rising. I wonder where people are moving to? Or are they adding units still?
Just put in your information and log in. (it can be fake) There you go rents and the prices of a house arre NOT correlated. http://www.bepress.com/cgi/login.cg...ituation=subscription&context=ev&article=1145
the fed is presently stuck between a rock, a hard place, and a cliff. the rock is fighting inflation the hard place is rescuing housing before it severly damages the economy the cliff is that a premature drop in rates (heck, probably any drop in rates) will ensure and even harder drop in our continuing sinking dollar. they cannot get around the rock, and trying to get off the hard place means jumping off the cliff. ahh... noting like a bubble based economy, eh?