On a Relative "Yield" Basis, Housing Is the Most Attractive Since the Mid 1960s

On a Relative “Yield” Basis, Housing Is the Most Attractive Since the Mid 1960s On June 10, I mentioned that in terms of the level of mortgage rates, the sale price of houses and the income of families, the affordability of home purchase of late is higher than it has been in about 40 years (see Chart 1). With Thursday’s release of flow-of-funds data by the Fed, I can demonstrate yet another factor suggesting the current attractiveness of a home purchase – the implicit yield on owner-occupied