The Fed, MBS, and housing

Understanding the "Bernanke straddle"

House prices have soared across the world since the pandemic began, with prices up about 10% compared to last year in the rich countries. The U.S. is no exception, with the S&P Corelogic Case-Shiller National Home Price Index up 15% since last spring.

That has some people worrying about another housing bubble—or at least the possibility of destabilizing …