By Greg Hunter’s USAWatchdog.com
Yale Professor Robert Shiller says, “People who were thinking about buying a house last year are kicking themselves. Prices are up 12% in a year. As the market tightens, the attractiveness diminishes, but it’s still attractive.” Professor Shiller, who is one of the founders of the S&P/Case-Shiller Home Price Indices, sees two big possible headwinds for housing. One is the Federal Reserve ending or “tapering” its $85 billion a month bond buying program. Shiller contends, “I think people were really surprised at how much the mortgage rate reacted to the Fed merely talking about tapering off this bond buying program. Just the talk pushed up interest rates the better part of a percent.” The other headwind, Dr. Shiller says, “We might slip into another recession. China, India, Brazil and Russia are all slowing down. People are getting edgy about that may be just as big of a risk as the pull-back of Fed stimulus.” Dr. Shiller goes on to say, “The really big question on everybody’s mind is-is this something big, this home price boom over the last year. Is this boom going to last 9 years? I think not. Join Greg Hunter as he goes One-on-One with Yale Professor Robert Shiller.