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Refueling the Housing Bubble? - Article by Lawrence Yun

TJ_98370TJ_98370
edited June 2008 in The Economy
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I don't agree with everything he says, but the following is a surprisingly candid article by Mr. Lawrence Yun.

Refueling the Housing Bubble?

Comments

  • perfectfireperfectfire
    Yun wrote:
    We are back to the careful underwriting standards of verifying people's income, requiring escrow accounts, and back to thoroughly checking borrower's ability to repay the loan.

    Not true. That still has a way to go.
    Yun wrote:
    However, the current low interest rate policies of the Fed are a big help to housing because low rates can begin to furnish genuine potential homebuyers with the financial capacity to think seriously about becoming a homeowner. Furthermore, the rate cut is lessening the degree of forthcoming ARM resets, thereby lessening the burden the current subprime loan borrower faces.

    FFT does not equal mortgage rates. Mortgage rates are way up lately. Also, aren't most ARM rates are based on LIBOR?

    Candid? Yes. Accurate? No. Also note that he basically only talks about mortgage lenders, mortgage brokers, ratings agencies, the Fed and interest rates and never once talks about the NAR's or their members' involvement in the bubble (he talks about his bad forecasts, but that was after the peak and he makes excuses for it anyway). It's easy to be candid when you're enumerating someone else's sins.
  • SeattleMooseSeattleMoose
    Luckily, Mr. Yun and the NAR have absolutely no conflict of interest in ALWAYS saying it is a great time to buy. :wink:
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