I agree with your assessment. Great tool thanks for the link. The interesting thing I noticed is that the last California housing boom occurred with much higher interest rates, like you I don’t know what the actual mortgage rates were back then but I imagine they were much higher than the 2001 to 2006 boom. The Fed funds rate dropping from 7.5% to 2.5% shows how much more room the FED had to maneuver verses today. There isn’t a whole lot the FED can do buffer this other than dropping the FED Funds rate back to 1%. If we see the FED do that then it will only be a response to a severe recession.
