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And core logic of reporting the biggest yearly gain for home prices in over seven years of twelve point 1% in April of the year ago month.
But despite that good news our next guest says housing could be in for some major shocks do the Fed -- -- financial director of investments ten -- Joins us now and Ted -- a mortgage market right now the artificial because of the Fed.
And that the tapering of mortgage backed securities may be could be up catalyst in a bad way please explain.
-- Now now now now this I think there how it's still going to be a positive about catalyst for the year but you solve them -- the mortgage rates jump.
Tremendously last week over a couple of days nothing that was a shock to the system that could -- will happen if the Fed does pull all of the bomb bile from the table if it does happen -- -- no way that's you know a large percentage agrees I think you will loop in my choke off.
Some of the demand housing -- -- -- took it off but it could be a problem here that we're showing -- A chart a map here looking at the average 36 year rates and in every region it is below 4%.
After the -- the to the who's who worry so much about.
-- -- -- higher hurting home prices.
Home prices were home home sales were really good at a time when interest rates were at six and 7% 4% isn't gonna kill housing sales -- it.
Don't think so he right about that did something to people who assay events.
Nice enough -- Palin have the proper credit -- will be okay and they'll probably go ahead but.
You know -- book -- the investors who are out there buying homes they've taken a lot of the excess liquidity off the market so I think -- back to the point of of seeing -- Pretty solid demand house and from population growth -- -- job creation and people could unify to house in -- so OK you know how is gonna be okay.
Not Ted I got to ask you about another thing I read deeper and -- notes.
And you actually argue that the feds pull back on some of this buying -- always bonds keep interest rates low that a pullback could actually good for stocks.
Even though every time we see speculation the Fed will do that stocks tumble how could be good for stocks.
But I'd say.
Did is that if if we see interest rates go up.
Because the economy's getting better.
That would be good for stops and I think that we saw little bill that last week you know the economy did get a little bit avenue -- we are seeing some growth that is consumer consumption is not -- wanted to let you know we have some positive data out of manufacturing and energy.
You know if the interest rates go because the economy get better then I think they'll be good for -- if the fit.
Only thing the Fed to stop you know they're -- quantitative easing if is this if it's for good reason and that reason is economic growth in in more employment yes that we hadn't thought about that that that some might.
Pull back on their lose money because of good things all we keep think it is -- but it happened back and we'll get slaughtered now let's go into one last moment utterly unrelated but I love this to you came on here before.
And you talked about coach stock which he -- this comes up 5% since I guess the only problem is quarters is clean -- clock.
-- -- This is an update -- this.
Hassle than they're gonna have to face I mean they've got to increase there.
They they they're doing a good doubled season China but you know they got their face and a huge competitor Michael course.
But I do think that there's position in retail -- -- but for coach in that they'll be okay but you know in the near term -- just another form.
But at a at a PE ratio that's -- -- -- peg ratio below one.
I think the stocks even -- worth -- money yet yet what is the rival peg ratio for court by the way do you know offhand.
It's also the one as well because that's a very fast growing company and I mean -- -- new company so I mean they're.
All right OK coach up only 6% the other suck -- 20% I think I've moved from one to the -- our thanks for being with us -- Paris today.
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