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Well Fed Chairman Ben Bernanke says the housing market remains depressed.
How our next guest says the Fed's decision to extend Operation Twist is a big deal for the housing sector I hope so joining us now -- them professor.
-- -- you Penn's Wharton school of business professor thank you for being with us you think this next round of stimulus is gonna help.
Oh well it's not just the next round it -- what it points to the Fed is sending signals is that it's going to be there that it's worried.
Operation Twist of course is key to keeping mortgage rates slow.
But if necessary they'll do more.
You know if someone said to me ten years ago my position -- talk about this other mergers are going to be at 3% and ten years.
I would say you know what I quit my job is buying and sell homes and know what is doing that no one is able to take advantage of these -- -- -- reits right now.
Well not quite true actually there are of course the low rates are low in the commercial side as well.
And there are what's holding up the market -- being held up is.
A buying for rental buying distressed homes and rental and actually in the news report today there was some good news which has.
That the distressed sales percentage of sales 25% is a -- since 2008.
So there is in fact buyer interest often rental buyer.
Helping to stabilize market.
But you know you're absolutely right on non mortgage side the ability to finance a home on the single family.
Is just out of control difficult and I think the Fed has their -- on that -- their considering a new program which would help force B lending to.
You know one of the pieces of this number this morning -- -- me the most is that fewer cheap cheap homes were sold right that means the first time buyer is not out there.
The first time -- probably still living in home in his parents' basement.
Yup that's right it's the 250000.
Homes that in fact increase in a 100000.
Part of that also though these are numbers are volatile they move around a lot.
There is there's there at that number was up a few let's go by the way although obviously is of -- slightly lower number we're expecting a lower numbers since March -- good.
We're still up 9% above last year right that's -- point -- You know -- women -- a lot of investment banks trying to get in this market again potentially bundling loans again it just.
Makes you feel like it's deja Vu all over again I think it's not what do you actually think something -- that would help.
Absolutely we need to help this.
A good spot lead the best spot in the housing market is the rental.
We need that -- strength into that will help build this stability under housing prices which is one of the reason that consumers are.
On the side -- -- it -- prices will fall further the other reason is the weakening overall economy and of course the threats from Europe that's the big deal cat and then the whole.
Lack of jobs soon locked and I hope it all gets better soon thanks for being with us but.
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