http://www.zerohedge.com/news/2013-0...me-home-buyers
This is an excellent article.
In a non hyperinflationary rate rising environment, small rates of increase in the interest rate have a MONUMENTAL impact on house affordability.
This is why the Fed CANNOT stop QE.
"Rate normalization" (6-8%) would plunge housing prices by AT LEAST 20%, probabably more.
The Fed will keep buying MBS. Even if they taper their UST purchases (I don't think they will and if they do it won't last long) but the MBS side of the equation is a trap. If they stop - the banking sector will COLLAPSE.
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