Russian President Vladimir Putin may be good for the housing market…?

At least that is what one article in the Santa Fe New Mexican asserts.

[Russian] Bear with us here.

While Putin is not exactly smiled upon in this corner of the world, causing economic and banking uncertainty, the articles says that his political aggression creates uncertainty in the U.S. stock market, which in turn helps keep mortgage rates from rising.   

The article states:

When investors become fearful of the movement in the stock market, their first mode of action is to sell, sell, sell. Often stocks are sold off in favor of investing in U. S. Treasuries. Treasuries are considered a safe haven for investment dollars. With the recent Putin shakeup, you can be sure many U.S., European, and Asian investors will invest in Treasuries as well.

Experts are predicting that the political climate surrounding Russia will not change anytime soon. If so, interest rates should remain favorable for some time. The 30-year Fannie Mae fixed-rate mortgage is currently at 4.5 percent, an excellent rate historically. Based on my research, I expect that this rate to continue in the near future. Therefore, expect mortgage rates to be in part determined by Putin’s actions. Use this time to your advantage.

However, Lindsey Piegza, Sterne Agee chief economist explained that many economists upgraded their forecast for 2014 since they banked on strong international demand.

But with everything going on in Europe this is not proving to be true.

“A lot of the political strife is turning into economic strife,” Piegza said. “We don’t rely on Russia a lot, but Europe does. So if Europe slows down further it will have a negative impact on us.”

While it won’t slowdown the recovery, it won’t be one positive factor.

But whethet it truly translates into a positive for housing could be a stretch.