You beat me to it! Note what CalculatedRisk stated:
"An interesting point: the measure of Owners' Equivalent Rent (OER) is at about the same level as two years - so the price-to-rent ratio has mostly followed changes in nominal house prices since then. Rents are starting to increase again, and OER will probably increase in 2011 - lowering the price-to-rent ratio."
OER increases? It happens, even with stagnant interest rates...
Just think, requiring lenders to: reserve 5% of capital on any residential loan, require 10% DP with private MI, or require 20% DP. This effort appears to have support from both sides of the aisle. On first blush it is more prudent than Canada's "prudent" system.
You beat me to it! Note what CalculatedRisk stated:
ReplyDelete"An interesting point: the measure of Owners' Equivalent Rent (OER) is at about the same level as two years - so the price-to-rent ratio has mostly followed changes in nominal house prices since then. Rents are starting to increase again, and OER will probably increase in 2011 - lowering the price-to-rent ratio."
OER increases? It happens, even with stagnant interest rates...
On this vein, ht CalculatedRisk, details on the new proposed mortgage lending regulations in the US:
ReplyDeleteWSJ: Regulators Unveil Mortgage-Lending Rules
Just think, requiring lenders to: reserve 5% of capital on any residential loan, require 10% DP with private MI, or require 20% DP. This effort appears to have support from both sides of the aisle. On first blush it is more prudent than Canada's "prudent" system.
@jesse
ReplyDeleteme too! i have this article open since it was posted on calculated risk but didn't get a chance to publish it!