The End Of Forbearance May Not Be What Pops The Housing Bubble

3 years ago
1

The end of forbearance should signal a coming glut in the supply of homes for sale, but I would venture to bet that will not be enough to pop the housing bubble now that Fed liquidity has completely uncapped any limit on the demand side for housing in this country. Certain localities may see big declines, but the national market likely can only be corrected by a rise in interest rates to reign in this artificial demand.

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