Scott Sambucci

Housing Solution: Crashing Home Prices or Cheaper Mortgages?

Working in the real estate industry, I'm hearing lots of chatter among mortgage brokers and real estate agents thinking that cheaper money is going to spur demand and jumpstart the housing market. Seasonality is a problem right, but in the longer term, I side with a continued price decline as the mechanism that will begin clearing the market. I came across an interesting paper by John Taylor from Stanford that was rather critical of the use of interest rates to stimulate demand. More info on this here:

scottsambucci.blogspot...

Housing Solution: Crashing Home Prices or Cheaper Mortgages?

Working in the real estate industry, I'm hearing lots of chatter among mortgage brokers and real estate agents thinking that cheaper money is going to spur demand and jumpstart the housing market. Seasonality is a problem right, but in the longer term, I side with a continued price decline as the mechanism that will begin clearing the market. I came across an interesting paper by John Taylor from Stanford that was rather critical of the use of interest rates to stimulate demand. More info on this here:

scottsambucci.blogspot...