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Still the previously -- Hans climbing more than 10% last month from the prior month from September.
October sales were up nearly 11%.
From the same time last year you got record low mortgage rates so is housing actually healthy.
-- content answer that he's resident fellow at American the American enterprise -- he's in Sarasota Florida isn't helping.
I think it's helping a little bit that the users still climb back from very very low numbers.
But you have to think about what we're doing to get this progress as you said we've got record low interest rates probably the lowest home rates in fifty or sixty years.
We've got great housing affordability.
Yet you know people like and and they are the -- -- and home -- they want that credit Sanders to be loosened.
And that's not the solution I think you've got to get back to fundamentals which I've been saying for some time he got to get more jobs jobs is where the solution is not building more homes.
What about those record low mortgage rates and how much credit.
Does the Federal Reserve get for doing that and you find that positive are worse -- Well its very worst some it's it's certainly some positive from the point of view.
Trying to stimulate housing but at what cost is I believe it's spreading all kinds of distortions throughout.
We don't know what all those distortions are stock market certainly been one of the beneficiaries.
But there I'd have to be others you can't keep interest rates -- this low for this long without.
You know as planting the seeds of the next does set of problems.
And FHA saw this.
Just last week when they announced that they have negative net worth then they're negative in their net worth.
With the low interest rate environment we have is actually 31 billion dollars.
-- that's huge that's a huge decline from where was last year so they're -- winners and losers here certainly savers are losers and now the FHA is a loser.
And it may turn out to be the taxpayers a loser.
Yep -- half percent maybe that's all you gotta have headed down payment you gotta love FHA -- -- 5% I think if you refinance.
To that point.
Are you seeing bubbles develop again the Miami market has come back -- your -- Sarasota.
Pockets and Florida are hot again you see developers -- ended and building apartment buildings.
Down in Miami in that part of Florida.
Right having money is cheap if you can get you know if -- slender -- land -- now lenders are literally awash in liquidity.
I had one very large lender that was the phrase that they used we're awash in liquidity so they are looking for places.
To lend money it's hard to fine because you have to have good credit together -- Again the money will move to areas that them the banks and other lenders feel that -- supports there.
But again the federal government is really what's directing this.
And it's gonna be a very difficult thing to unwind.
The federal government's buying most of the new mortgage debt and -- that was what happened out of September's announcement.
And that again creates huge distortions in the marketplace that we don't know how these are gonna unwind in the future I'd be much.
More optimistic if we weren't relying so much on.
Stimuli coming out of the Federal Reserve.
Ed great to see thank you so much -- take -- your pleasure thanks day in and around.
Enjoy the Florida sun.
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