Will Rising Interest Rates Uproot Housing Recovery?

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July 16 (Bloomberg) -- In today's "This Matters Now," Chris Whalen, executive vice president at Carrington Investment Services, talks with Tom Keene about the potential impact of rising interest rates on the recovery in the housing market. He speaks on Bloomberg Television's "Bloomberg Television."

Hi'm tom keene.

What does christopher whalen say?

He knows that jpmorgan already sees a declining mortgage-making spirit.

That is what matters.

Jumbo loan rates is cheap.

Standard mortgages.

Bouncing off each other with in the market space.

How bad is it?

It is not bad.

Relatively low volumes.

If you take the disappearance for distress out of the numbers come a mid-single digit year over year.

Is there a place where the mortgage industry stops, the housing industry stops?

What i think everyone is hoping for is to see slow growth that is more or less in line with the economy and population growth, which is sustainable.

If we do that, we will not have a bust.

To go i see so many e-mails that say i cannot get a mortgage.

This is very friendly to consumers.

It is protecting them from getting a mortgage.

The bottom third in terms of credit quality is pretty much frozen out.

What is the future of the job industry?

A lot of people that affect.

Do all of the jobs go away?

I did not think they have to go away, but we have to figure out how to restore come -- some kind of mortgage sector.

Today virtually all the underwriting is government guaranteed.

If the risk is priced correctly, you do not need a government guarantee.

There is an opportunity here.

Can you agree with michelle meier of bank of america merrill lynch at double-digit house price increase?

I think she is right but will probably hit the number by the middle of the year.

The question is what happens in the back half of the year?

I think we're seeing a surge this year.

Next year is half of the share.

Cosco of 16, 17, 18 in her model, it is down.

What are you looking at in goldman sachs earnings?

I do not write research on goldman sachs.

I think they will do fine given the environment.

Probably the most nimble and flexible investment bank.

Given what we saw with j.p. morgan, i would expect goldman sachs to have done pretty well.

Christopher whalen.

Goldman sachs earnings out at 7:30.

This text has been automatically generated. It may not be 100% accurate.


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