THE BASIS POINT

Trulia chief economist Jed Kolko: higher rates won’t derail housing

 

Good CNBC interview this morning with Trulia chief economist @JedKolko, in which he provides data to support his case for why housing can sustain a rate spike. This is a must watch as rates continue a sharp rise and are now in the upper 4s.

This interview today follows a report Kolko released two weeks ago in which he said the following:


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Reference:
– CNBC Interview with Jed Kolko-Mortgage Spike Won’t Derail Housing

– Buying Cheaper Than Renting Til Mortgage Rates Hit 10.5% (Jed Kolko)

– $XHB, $TRLA

 

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Comments [ 2 ]
  1. rudiustrading says:
    June 25, 2013 at 3:56 pm

    I am not going to try and refute his argument. But, in my opinion, these people (at the roundtable) still don’t get it….it isn’t about rates, it’s about savings, affordability, and maybe most importantly, flexibility. It might be cheaper to own vs. rent but most people simply can’t afford a house…they don’t have $20-50K to put down and lock that cash up (let’s not forget about all the carrying costs as well per year)…And most importantly, especially for the 25-35 year old demographic, mobility is key in this economy…in my first five years after undergrad, I moved to three different cities…and guess what, I still don’t want to own even though i can afford it and it would be “cheaper”. I like being able to put my entire portfolio in cash in 24 hours if needed. But that’s just me.

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  2. Lori Carter says:
    June 29, 2013 at 5:01 am

    I agree with rudiustrading. The slight upturn may have just taken me out of the home purchasing market. In order to be able to pay the mortgage on a home, I would need 30% down. One simple talk by Bernicke; loss of ability to buy a home for me.

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