Economics Matters by Laurence Kotlikoff

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Your House Is Your Castle Against Rising Inflation
larrykotlikoff.substack.com

Your House Is Your Castle Against Rising Inflation

Larry Kotlikoff
Apr 19, 2022
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Your House Is Your Castle Against Rising Inflation
larrykotlikoff.substack.com

This is a column I published yesterday (4-18-22) in the Wall Street Journal. Unfortunately, it’s behind their paywall. I won't be able to post it here for a month given their copyright arrangement. The gist of the article is that, once you adjust for inflation, short-term mortgage rates are essentially zero and could end up negative if inflation doesn’t decline as the bond market predicts. As for projected long-term real mortgage rates, they too are close to rock bottom. Consequently, home purchase remains very inexpensive despite appearances to the contrary based on nominal mortgage rates. If you have access to the Journal, take a read. If not, consider a subscription. Yes, its regular columnists are quite political. But it may have the best news reporting of any U.S. paper.

Laurence Kotlikoff is a Boston University Economist, a NY Times Best Selling Author, President of maxifi.com, and Author of Money Magic.

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Your House Is Your Castle Against Rising Inflation
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4 Comments
Jennie Phipps
May 24, 2022Liked by Larry Kotlikoff

I'm having a house built. It has taken too long and cost too much. But the location – on water, on stilts and in Florida, is lovely. Larry's column reassures me that I haven't lost my mind.

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Larry Kotlikoff
May 24, 2022Author

Probably your safest move. Enjoy! But keep an eye on the contractors. They can overcharge between bats of your eye! best, Larry

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