Re: discount rate and mortgage rates

sinister wrote:
<royls@xxxxxxxxx> wrote in message news:47bef43f.6433202@xxxxxxxxxxxxxxxxx
Habitual liar and feudal "libertarian" apologist for privilege Paul
Birch has once again foolishly tried to rescue his previous lies with
even more absurd lies, and has again been duly demolished for it:

http://www.libertarianunderground.com/Forum/index.php/topic,198.40.html

Better read it quick, before Birch again uses his power as forum
moderator to delete all the refutations of his claims that he can't
think of any plausible-sounding lies to counter.

God, I hate it when moderators and blog owners do things like that.

-- Roy L

From your post there: "Land price booms are initially based almost entirely on EXPECTATIONS about the relationship between FUTURE rents and the discount rate."

Is there a relationship between land values increasing due to the discount rate decreasing, and mortgage rates decreasing?

When I look at the boom in residential property values in the US, I see two components: a purely speculative bubble component, and a component due to mortgage rates decreasing. So a buyer could afford a larger mortgage for the same monthly payment.




I see people exiting the equities market and speculating on
residential real estate.

--
Les Cargill
.

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