An Insider’s Look Into How Secondary Marketing Evaluates LOs

In this webinar we’ll explore the long-term financial impacts of renegotiations, extensions and fallouts, plus basic guidelines to be viewed as a professional by your secondary marketing department

HousingWire Annual Virtual Summit

Sessions from HousingWire Annual 2021 are going to be virtually streamed on October 25. Register now for FREE to tune into what housing industry leaders had to say this year!

How Freddie Mac is addressing affordable housing challenges

Freddie Mac is focused on addressing limited access to credit, housing inequalities, creation and preservation of affordable housing supply and advancement of homeownership education.

A NAR board member tells (almost) all

For this week’s Houses in Motion, a miniseries that is part of HousingWire Daily, we spoke with Lisa Dunn about the pressing issues in real estate, including disclosure of agent commission.

Politics & MoneyReal Estate

Is the Fed creating a housing bubble by keeping rates low?

HW+ housing bubble

Remember that pretty girl from your history class in college — the one who would blow hot and cold, so you never really knew what she was thinking? The U.S. housing market can be like that girl: you can get many mixed messages (especially about a housing bubble) unless you are paying attention. But who has time for that? Hey, that’s all I do, so you’ve come to the right place.

The latest messaging is that the Federal Reserve is creating a housing bubble by keeping rates so low that prices can skyrocket. Or that Americans who recently purchased homes are going to get all their equity wiped out when housing prices take a nosedive. Recently, CNBC contributor Peter Boockvar was quoted in Trading Nation  as saying:

“I feel bad for the people who bought homes over the past year because they’re the ones that paid the very elevated prices.” The article goes on to say that He singles out those who put down 5% amid historically low mortgage rates. If home prices correct by 10%, Boockvar sees a world of pain.” 

A world of pain because a purchaser had the financial wherewithal to buy a home for their family during a time with historically low mortgage rates? Really? 

To be fair, there is potential for pain if one purchased a home at the “top of the market” with a very low down payment right before a job-loss recession. This is one of the risks of “late-cycle lending.” Taking on debt, with little selling equity, then losing your means of repaying that debt is a crappy situation for anyone — and if it happens to a bunch of people at once, it’s even worse. But how likely is that scenario in the current market?

This content is exclusively for HW+ members.

Start an HW+ Membership now for less than $1 a day.

Your HW+ Membership includes:

  • Unlimited access to HW+ articles and analysis
  • Exclusive access to the HW+ Slack community and virtual events
  • HousingWire Magazine delivered to your home or office
  • Become a member today

    Already a member? log in

    Most Popular Articles

    FHFA to make desktop appraisals permanent

    Desktop appraisals, a temporary flexibility implemented in March 2020 amid lockdowns and social distancing, will become permanent, the FHFA said today.

    Oct 18, 2021 By

    Latest Articles

    Obstacles to tech adoption & the question of appraisal bias

    During a panel on residential appraisals, experts posed technology as a way to make appraisals more efficient and less subjective, as regulators take steps to understand and counteract bias. HW+ Premium Content

    Oct 21, 2021 By
    3d rendering of a row of luxury townhouses along a street

    Log In

    Forgot Password?

    Don't have an account? Please