Will Higher Interest Rates Slow the Housing Rebound?

Real estate exec Jamie LeFrak disagreed with my blog item earlier this week that declared home prices had hit bottom. His argument? The recent uptick in sales is a “life preserver” tossed to the industry by Washington in the form of low rate, government-insured mortgages. “Now that the Fed is beginning to lose control of the currency and therefore lose the ability to maintain these artificial rates, you will see a second wave of lower housing pricing,” he says. That’s a shot of his grandfather’s LeFrak City development in Queens by the way.

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