2min chapter

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Is the Stock Market Getting Ahead of Itself? (EP.293)

Animal Spirits Podcast

CHAPTER

Home Builders Aren't Lowering Prices, They're Buying Down Mortgage Rates

Goldman Sachs is calling your housing bottom already. It's way too early to say that it's still over, but I think we've been talking about this. The home builders are paying those to the banks saying we're going to pay down a rate from 6% to 4.5%. That can't last forever. But after they get the backlog of houses in, that could potentially for a while put something of a floor under housing prices if they're not willing to lower prices.

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