The Real Estate Bubble

The other day I posted about how foreign investors buying up our 10-year treasury notes is causing mortgage rates to stay low. We all know that when mortage rates are low, more people will want to buy houses, which increasing the demand, which raises prices.

Someone commented with a link a to this article in The Economist that I think is a must-read. Thanks, Ilya for posting the comment.

Also, in case you haven't heard about this blog yet, check out TheHousingBubble2. Ben has been doing a nice job of posting articles and links regarding the housing market. Just don't stay too long or you'll get depressed.

Tags: Housing Bubble, Mortgage Rates, Treasury Yields