Robert Shiller: Home Prices Experience 'Abnormally Positive Impact' from Low Mortgage RatesVW Staff
Case-Shiller Index co-author Robert Shiller spoke with FOX Business Network’s (FBN) Stuart Varney about the future of the housing market in the United States. Shiller said, “I think we have had an abnormally positive impact with the very low mortgage rates.” He admitted that he worries about when home prices will stop rising, saying, “I think home prices will probably go up for six months or another year, but beyond that I don’t know.”
Excerpts as well as the video of the Robert Shiller interview can be found below.
On how rising mortgage rates might impact the housing market:
“I think we have had an abnormally positive impact with the very low mortgage rates. They reached record lows last fall and people react to a record low. You think, ‘Hey the mortgage rate can’t go down much further, if anything they are going to go up so I better buy to lock in,’ and they had this opportunity at the same time when there was a shortage of houses on the market so of course it starts to bring home prices up but that’s ending now. That’s why I worry, I think home prices will probably go up for six months or another year, but beyond that I don’t know.”