When US Treasury yields below 1% for maturities less than 20 years,
households are incentivized to invest in the stock market and real estate. As such, it is no surprise that the Case-Shiller national home price index rose 4.73% YoY in April.
At the same time, average hourly earnings for US workers rose 7.76% YoY in April and 6.75% in May.
Phoenix led in YoY price growth at 8.8% with Chicago at the bottom with 1.4% growth.
It doesn’t look like The Fed will pull the plug on its prodigious asset buying anytime soon.
“I swear that I will not meaningfully reduce The Fed’s footprint in the economy.”