Written by Steve Murray, publisher From RealTrends.com: Record low interest rates, strongly increasing home prices and near record stock market highs in all indexes. A sluggish economy with a Federal government doing all that it thinks necessary to stimulate the economy. A political leader of Fannie and Freddie with a history of being in favor of expanding low income lending to the housing industry.Yep it is 2002-2003 all over again.
Can you imagine what is going to happen should Mel Watt loosen underwriting standards to stimulate mortgage lending into a market that remains critically low on inventory? Before he was even confirmed he stopped a planned increase in FHA loan fees. What do you suppose his next move will be and who is there to oppose him in these efforts?
Look out for the real possibility that this year will see a surge in home sales and prices that go up even further than most forecasters are thinking. While not a certainty you have to wonder.
Déjà vu anyone?