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Talks more real estate discuss more about the current real estate market trends let's bring in doctor Sam Shandong he's the president and chief economist.
Pretend on economics and good morning thanks for joining us -- itself current trend -- is this to be believed or are we entering some sort of period where it's temporary and then we'll be.
Back retreating once -- The house prices are going up sales volumes are up there are fewer homes available on the market in debt.
That narrowing of supply and demand is certainly helping to build some momentum.
If people feel more confident about the direction housing market yes and that sentiment is also helping -- build up momentum.
It certainly can change on a diamond.
Like prices are going up and they need to get into the market challenge for us is that housing recovery doesn't have independent momentum.
And by that I mean we're still extraordinarily dependent on these historically low rates without them.
I was -- at that was my.
Q what I was curious -- you know like how much of a rate increase could the housing market.
Withstand at this point to for the -- in I'm in the ten year treasury still like 2%.
The government's view on the 190% of every avenue housing purchase Federal Reserve is actively involved in helping to keep rates low that's part of they're policy intervention we also -- that and as you point out.
Fannie Mae and Freddie Mac have been operating under conservative shipped since the beginnings of the housing crisis begins with the recession.
And that means that there's a market for mortgages.
And it's so little bit easier to get a mortgage but 'cause of this intervention.
And in spite -- that it's actually still quite difficult -- credit standards are high and maybe that's appropriate.
The what what -- the -- policy issues -- that we were real people how -- things change you whereby we get a curve ball over the course next six months of next year we have had a permanent director for the Federal Housing Finance Agency which oversees Fannie and Freddie while they're operating in conservator ship.
There's a real push on Capitol Hill now to get a permanent director in there.
-- looks -- the administration is pushing for someone who will work.
More closely with them in trying to coordinate -- policy helping to you know maybe -- -- break -- some principal balances but.
Duels are the sorts of things that you know couldn't presents and threats of momentum we're seeing right now.
A lot of in our coverage -- -- covered so far this morning I've gotten a feud tweets from viewers saying.
-- did you know don't believe the high ate my house is I'm barely breaking even on my house.
And our I'm underwater or -- if you if people's wages are growing -- come up with money.
-- -- I ended down payment on any property at this point -- I want to put it in perspective that there are a lot of markets.
Where people are still underwater there -- a lot of situations and Hitler and that they can't afford to go -- buying alt a home.
In -- -- recent coverage of you know served higher -- condominiums in new Yorker just outside of of Manhattan.
And if you're absolutely right it's important to mind that the recovery -- -- yet fully balanced.
There are markets like New York their parts of San Francisco Washington DC.
Boston where you know there's there's some supply constraints in place -- -- as many new homes available on the market but.
There's a lot of wealth.
In the market sometimes people are coming from abroad and they're buying homes in the city simply because it's a safe haven.
Because of the -- because those in Miami to yeah yeah absolutely Miami's we'll just -- cannot.
-- -- get their hands on content as a store of wealth.
You look at some of the lower price points in the market tell you look at to some you -- markets that are real gateways for capital entering the United States.
And -- then the reality of Atlanta of the situation comes in where you know what.
Job growth matters a -- in those places and if we don't have new momentum in job growth then you were even more dependent on those rates and to have been.
The underlying economics you're really come into play there.
Sam thank you so much thank you -- great perspective as always and that's it.
Keeps it there thank you again --
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