The Fed will stop buying mortgage backed securities soon, and so the guessing game begins as to how much mortgage interest rates will increase.
35, 50, 100, 200 basis points? No one can say, but it’s clear that there won’t be many buyers for whatever junk remains in the market.
Foreigners are being courted to buy, particularly sovereign wealth funds.
So far, there’s not been a stampede…
Gorilla says: “Don’t go throwing good money after bad: it works in dozens of languages!”
Tags: housing, sovereign wealth funds