By K.K. MacKinstry/LendingLies
Today I listened to a webinar about housing trends hosted by website Housingwire. Ten-minutes after logging in, I logged off. Chief Economists from Fannie Mae and the Mortgage Bankers Association discussed economic indicators that were little more than banker’s spin. They stated that Federal Reserve rate hikes would preserve the wealth effect of home equity among the middle class and that tax cuts would help stimulate the economy. The economic indicators I have reviewed paint a much different scenario emerging.
Contrarians predict that rate hikes will further slow an already slowing real estate market, and that tax cuts will average less than $1,000 dollars per family and will not have a stimulus effect on the housing market. They also discussed the benefits of the Fed selling off 8 trillion dollars of Mortgage-backed Securities and doubted that selling-off these empty trusts would create market volatility. At that point…
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