The U.S. housing market – once seen as the savior of the economic recovery – has now come under intense scrutiny. Some experts are ringing the alarm bells that ultra low interest rates championed by the Fed could result in the next housing bubble. David Stockman, President Reagan’s OMB director, believes the U.S. is already in the middle of a new housing crisis due to artificially low rates and speculation. Former FDIC Chairwoman Sheila Bair told The Daily Ticker earlier this month that low rates were actually discouraging banks from lending and, in turn, hindering economic growth.
Now government regulators are expressing apprehension over the meteoric rise in mortgage REITs. According to The Wall Street Journal, mortgage real-estate investment trusts “have been selling shares to the public at a rapid clip over the past three years” and “assets held by mortgage REITs are increasing from $159 billion in 2009 to $450 billionRead More »from Multi-Family Sales Will Continue to Lead the Housing Recovery: Greystone CEO