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US central bank warns of housing bubble
Surging home prices are “unhinged” from market fundamentals, but correction won’t be as devastating as 2007-2009 crisis, Fed says The Federal Reserve Bank’s Dallas branch has warned of a “brewing US housing bubble,” saying that prices have surged beyond levels justified by market fundamentals, creating risk of a market collapse. “There is growing concern that US house prices are again becoming unhinged from fundamentals,” Fed economists said in a research report posted earlier this week. “Our evidence points to abnormal US housing market behavior for the first time since the boom of the early 2000s,” they added. T

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