Originally Posted by Literature
Do we have the necessary banking regulations in place to support low interest rates and increasing home prices? I sure hope so. Otherwise, as I understand it, interest rates need to go back up.
Apples and oranges. Low interest rates alone aren't a problem. Low interest rates, bad regulators, and increased leverage are a problem.
Housing is mostly a supply and demand reationship. When lenders were throwing money around due to low rates, securitization, and general dumbassery that distorted that relationship.
Finally, interest rates do NOT need to go up right now. Inflation is non-existent and deflation is still a near term risk (though much less so than a few years ago).