Despite a slew of recent positive economics news, some economists are concerned about a slowdown in the US housing recovery
Despite a slew of recent positive economics news, some economists are concerned about a slowdown in the US housing recovery. Part of the problem is that the Fed has little control over many aspects of the housing industry. Yes, they can strongly influence mortgage rates. However, the central bank has very little impact on consumer demand - that is, they can't force anyone to buy a house. They also can't force banks to make more loans, and lending is still quite restricted compared to pre-Recession levels. It's important to note that the Fed still sees GDP growth at roughly 3% for the year. That's an improvement for sure, but could be substantially more robust with a stronger housing recovery. (VIEW LINK)
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