Posted on 06/07/2006 5:52:05 AM PDT by Hydroshock
Realtors call for Fed to stop raising rates as market grows ‘vulnerable’ The National Association of Realtors cut its 2006 forecasts for both existing-home and new-home sales.
The housing industry's biggest trade group Tuesday lowered its forecast for U.S. home sales this year and called on the Federal Reserve to stop raising interest rates because parts of the housing market are “vulnerable.”
“Experiencing a slowing from a hot market is a good thing because we need a solid housing sector to provide an underlying base to the economy, and slower appreciation will help to preserve long-term affordability,” said David Lereah, the group’s chief economist.
“But this is a time for the Fed to pause on rate hikes because we have some interest-sensitive housing markets that have become vulnerable,” he said.
(Excerpt) Read more at msnbc.msn.com ...
ping
btt
Hahahahah.. yea, lets make bad economic policies so lazy realtors can keep cashing big checks for doing nothing... NOT.
The era of easy liquidity is coming to and end... normal markets will flatten... insane markets will rapidly decline.. there will be individual exceptions, but this is going to be the general case nationwide.
I to am seeing a tightening of liquidity.
1. An increase in the Fed rate
2. Greater FDIC pressure on institutional over-extension (i.e. interest-only and negative amortization loans, maybe even "teaser" ARM's)
Both will contribute to the same effects:
1. Increased forclosures, and...
2. More homes on the market
These, in turn, will lead to price reductions in the over-heated markets and flattening in the "sane" markets.
That is what I think as well.
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