Home prices in San Francisco have plunged amid rising interest rates and, while not necessarily reflective of the whole nation, it isn’t surprising.
- Easy money and excessively supportive government policy during the pandemic helped fueled a surge in housing prices nationwide.
Perhaps the biggest issue comes from Obama’s income-based student-loan repayment plans, which capped monthly payments at 10% of discretionary income.
- That means borrowers aren’t paying off their debts and are then rolling themselves into more debt by buying a home.
- Credit scores of home buyers have generally increased since the 2000 bubble years, but have borrowers become more credit-worthy?