Latest / Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching Housing Affordability Ratios
In Episode 104 of Monetary Policy Explained with Fexingo, Lucas and Luna dig into why central banks are paying close attention to housing affordability ratios as a leading indicator for financial stability and inflation. They explore the link between the ratio of median home price to median income and the delayed transmission of higher interest rates to shelter costs in inflation indices. The hosts discuss a specific metric: the National Association of Realtors Housing Affordability Index, which fell to its lowest level since the mid-1980s in 2024, and how that data point shapes central bank…
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