
Earlier this week I detailed why I believe future housing markets will be very interest rate sensitive. The current market environment is completely controlled by interest rate policy at the federal reserve and distressed loan processing policy at the major banks. The combination of demand stimulus and supply control caused the housing market to bottom in 2012. Of course, since these are market manipulations, the future direction of home prices is uncertain. The market has many more headwinds than tailwinds. Shiller’s Bottom Line: Risk Lingers in Housing February 26, 2013, 7:00 AM -- By Nick Timiraos It’s possible that home prices have hit a bottom, but heavy government involvement to stabilize the mortgage market and the broader economy has made…[READ MORE]