Federal Reserve Has Fueled Housing Rebound, Pimco’s Cudzil Says

The Federal Reserve’s debt buying has helped housing both by holding down borrowing costs for home buyers and pushing investors to purchase properties instead of bonds, Pacific Investment Management Co.’s Michael Cudzil said.

“It’s definitely had a positive impact on the housing market,” Cudzil, an executive vice president who specializes in mortgages at Newport Beach, California-based Pimco, said in an interview on Bloomberg Radio with Tom Keene and Michael McKee. Along with helping traditional borrowers, the lower bond yields created by the central bank have “forced money away from center. You’re actually starting to see money moving out of the capital markets and into real estate.”