The Unassuming Economist

From the IMF’s latest report on the US:

“The housing market appears to be on a vigorous upward path which could raise financial stability concerns in the event of a reversal. The rate of increase of house prices has tripled relative to before the pandemic, spurred by falling mortgage rates, robust growth in disposable income, and shifting housing preferences, also raising concerns about housing affordability and access to the housing market. However, mortgage debt has grown by a fairly modest amount (around 5 percent y/y) and lending has been concentrated in households with high credit scores. Furthermore, even for vulnerable households that were hit hardest by the pandemic, federal and private sector efforts to temporarily defer loan payments have provided important support and has resulted in a decline of mortgage delinquencies.”