Robert Shiller Tells Fox Business That Low Mortgage Rates Have Had an “Abnormally Positive Impact”
Excerpts from the interview and a link to the video are below.
On how rising mortgage rates might impact the housing market:
“I think we have had an abnormally positive impact with the very low mortgage rates. They reached record lows last fall and people react to a record low. You think, ‘Hey the mortgage rate can’t go down much further, if anything they are going to go up so I better buy to lock in,’ and they had this opportunity at the same time when there was a shortage of houses on the market so of course it starts to bring home prices up but that’s ending now. That’s why I worry, I think home prices will probably go up for six months or another year, but beyond that I don’t know.”
**CREDIT: FOX BUSINESS NETWORK**