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Housing Expert Regarding Housing Crisis

posted May 14, 2010, 3:11 PM by Bill Trudelle   [ updated May 14, 2010, 3:56 PM ]

Housing Optimists Are "Not Paying Attention" to the Facts, Says Dean Baker

Baker lays out several reasons for his bearish argument:

  • Programs that lifted the market, including the tax credit for first-time buyers, have expired.
  • The Federal Reserve is likely to exit the mortgage market, which will push interest rates higher by the end of the year.
  • There's still an inventory property glut and rental rates are drooping in many markets, notes Baker, author of "False Profits: Recovering from the Bubble Economy." He says the rental market doesn't lie, as rents are now falling.

Read the full story and video at Yahoo Ticker