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Why Housing Prices Are So Expensive (EP.313)

Animal Spirits Podcast

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The Rise of the UK Housing Market

The UK is like 3.25 times the cost of a house in the U.S., and it's at one and a half times. People are putting less down on their homes because they're paying so much more for land, which makes sense if you don't have enough space to build your own home. The average mortgage rate has gone up from 1.7% to 2.8%. Mortgage rates are higher than 10-year treasuries right now; we've spoken about this before. Sean McGahey: Why do bond yields not go as high? What drives the spread of mortgage rates?

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