Jeff Greene predicts a major increase in housing prices if interest rates decline. He points out that interest rates currently inhibit market activity, as buyers and sellers wait for rates to drop. With a fixed-rate mortgage interest rate near 7%, many homeowners are reluctant to sell. Greene emphasizes that lower rates could increase housing availability, benefiting first-time buyers. He warns about unsustainable federal spending and the long-term reliance on government stimulus for economic growth, describing the situation as dependent on "printed money" and a ballooning national debt.
"If rates come down, we'll have a huge boom in housing prices," Greene told BI. A reduction in rates would likely result in more houses on the market.
"People have locked in loans for any number of years into the future, and so they're not going to give up those houses" before rates fall, he said.
Increased supply could help first-time buyers get on the housing ladder. It's "always been difficult" for young people to buy a home as they're competing against older people.
The economy's been running on printed money for a long time; it's not a secret," he said, alarming about the unsustainable debt and deficit spending.
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