In this week's episode, Mark explains why the market for existing homes has been diverging from the market for new houses. The Fed ZIRP, QE and Covid bailouts have locked Americans into their mortgages and low payments, reducing the supply of existing homes. This keeps them off the market and home prices high in&nbsp;an economy that is headed for a recession or crisis. Buyers have been diverted to newly constructed homes where builders have more flexibility to sell and there are no existing&nbsp;homeowners locked into mortgages.

Be sure to follow&nbsp;Minor Issues at <a href="https://Mises.org/MinorIssues" target="_blank">Mises.org/MinorIssues</a>.

In this week's episode, Mark explains why the market for existing homes has been diverging from the market for new houses. The Fed ZIRP, QE and Covid bailouts have locked Americans into their mortgages and low payments, reducing the supply of existing homes.{ai:summary}Low Fed rates and Covid bailouts have kept existing homeowners off the market, making the supply of homes low and prices high. Economists predict a crisis as the market for existing homes diverges from new homes. #economyBuyers are turning to newly constructed homes where there are no locked-in homeowners, giving more flexibility to builders to sell. Minor Issues explains the factors that have affected the housing market and the looming crisis that might follow. #economy

Dividing the Housing Market

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