But part of the jump in real estate prices has to do with the fact that mortgage interest rates are relatively miniscule. I believe you can still buy a new car with a 0% interest loan. But as is always the case, heaven help you if your mortgage is an ARM.
I need someone who really understands this stuff to explain it to me, but I tend to think that this artificially induced low interest is bringing its own problems. Of course, runaway interest is bad as well.
Posts: 35428 | Location: West: North and South! | Registered: 20 April 2005
A worrisome bout of inflation struck the U.S. economy in April, with consumer prices for goods and services surging 0.8% — the largest monthly jump in in more than a decade — and the year-over-year increase reaching its fastest rate since 2008.
The acceleration in prices, which has been building for months, has unsettled financial markets and raised concerns that it could weaken the economic recovery from the pandemic recession.
Wednesday's report from the Labor Department showed sharply higher prices for everything from food and clothes to housing. A 10% surge in the prices of used cars and trucks — a record jump — accounted for roughly one-third of last month's overall increases.
The cost of new cars was up 0.5%, the largest increase since last July. Prices for vehicles, both used and new, have been soaring as a result of heavy demand and a computer chip shortage that has slowed auto production and reduced dealer supplies.
Over the past 12 months, consumer prices have jumped 4.2% — the fastest rise since a 4.9% gain in the 12 months that ended in September 2008. Excluding volatile food and energy, core inflation rose 0.9% in April and 3% over the past 12 months.
Horse trailer prices have all gone crazy--as have prices for horses. People are comparing them to lumber and real estate. The trailer i bought 3 years ago has now more than doubled in price--and they are hard to get. On the used market I could get thousands more than I paid for it. People are now paying $25k for a good ranch broke horse. Also more than double from just a couple of years ago. My horse is starting to look like an investment--which is crazy.
-------------------------------- fear is the thief of dreams
