How Quantitative Ease Inflates Real Estate Prices, And Why It Does not Work Forever

Author: External Author | | Categories: Mortgage Broker , Mortgage Renewal , Mortgage Services

Quantitative ease (QE) is a simple concept, but not well understood by most people. Increasingly folks tell me, “QE inflates home prices,” and “prevents prices from dropping.” The first part is true, but the evidence on the second part is a little shaky. It can help to push home prices higher during a tight market, but it also extends inefficiencies. When market inefficiencies are extended too far, it can lead to market failure. If that happens, QE isn’t particularly effective at kickstarting home prices. It can sometimes make things worse.

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Original Article Source Credits:   Better Dwelling ,

Article Written By:  Stephen Punwasi

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