US home prices are booming and may continue to do so for a while.
This will likely give the post-coronavirus economic recovery a different complexion to the Global Financial Crisis (GFC) recovery - when weak demand meant growth was slow and interest rates continued to fall. In the near to medium term, the restoration of residential housing as a key economic driver may give the US Federal Reserve more leeway to hike rates. Following the GFC, the economy faced two major headwinds that kept activity in American construction depressed. First, the crisis triggered broad‑based deleveraging by torpedoing lenders' and borrowers' balance sheets. Lenders faced i...
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