Housing and the economy

Apparently Greenspan has been fascinated by the link between mortgages and the economy since the 1960s. The WSJ connects the dots and offers a great graph of the correlation between falling rates, rising construction, rising prices, and money “cashed out” and spent on other things. Some economists argue we are stealing growth from the future and will get mauled when rates finally stop falling (since they can’t go below zero.) Others argue that enough immigrants and lower income people remain to keep house sales powering ahead. I’ve put the graphics in the