Operation Bust?

S&P Case-Shiller 20-City Home Price Index (SPCS20RSA), YOY change, 2002 to 2012

The latest S&P/Case-Shiller home price index data has been released, and folks do seem to be getting ahead of themselves with the happy news “… it is safe to say that we are now in the midst of a recovery in the housing market … ” . The chart above shows the S&P/Case-Shiller home price index with the year on year change across the last ten years. I’ve also included the two rounds of Operation Twist we’ve seen undertaken so far. It doesn’t seem there is a persistent effect on house prices, considering mortgage rates are at record lows. Oh yeh, mortgage applications are falling as well.

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