A number of economists are questioning how strong and deep the apparent housing market
recovery stabilization is these days.
Mark Zandi, an economist at Moody’s Economy.com, flatly says the housing market is now on “government life support,” noting the $8,000 tax credit, low mortgage rates, and the propping up of Fannie Mae and Freddie Mac, all government-driven.
What do you think? What’s your gut instinct?
P.S. Homeowners are flocking to refinance homes with mortgages rates now below 5 percent, thanks to Federal Reserve policies.
P.S. II Robert Shiller, who works closely with Wellesley College professor Karl Case on the S&P/Case-Shiller Price Index, thinks we’re probably seeing short-term price volatility, not necessarily a major recovery. His conclusion is based partly on surveys done in Boston.