What happened to real estate in 1929?

[Charles A.]

Does anyone know?

🤗

I found this point instructive in the rise of the 30-year mortgage and its knock on effect on historical house prices and the broader economy:

“It was not until the 1920’s and the spread of the automobile that home mortgages outnumbered farm mortgages. In the 1930’s, the mortgage industry got a huge assist from the feds — not from the tax deduction, but from agencies like the Federal Housing Administration, which insured 30-year loans, and, over time, the newly created Federal National Mortgage Association, or Fannie Mae. Before then, the corner bank would issue a mortgage and wait for the homeowner to pay them back; now savings and loans could replenish their capital by selling their mortgages to Fannie Mae — meaning they could turn around and issue a new mortgage to someone else.”

Feds intervention is as old as the mortgage.

And whether it’s the CARES act,endless stimulus checks or QEs,the everyday investor needs to keep himself informed and circumspect before investing in any new asset.