Why didn the Fed raise interest rates in the early 2000s to slow the rising housing prices?
Your homes value increasing isn’t exactly a bad thing, so I don’t understand why you would see a problem with this. Your homes current devaluation due to the current mortgage crisis has more to do with lending to people who should never have been given mortgages then the fed lowering rates. The mortgage industry dropped the ball. Their policies for determining the credibility of borrowers became too lax. Sure, this was encouraged by the lower rates which increased applications and drove up home values but at the end of the day its the mortgage industries greed that did them in. No one made them lend to people who didn’t have the capacity to pay over the long term. It certainly isn’t like everyone doesn’t know that real estate is, and always has been, a boom and bust industry. The fed lowered rates to stave off a recession, one of their primary roles. They were successful during the period of time you are referencing. If the Fed was fundamentally flawed in what they did when they did it
