Federal Reserve Shocker! What It Means For Housing
The Federal Reserve has announced it will be shrinking its balance sheet. During the last housing meltdown in 2008, it bought the underwater assets of big banks. It has more than two trillion dollars in mortgage-backed securities that are now worth something because of the latest housing boom. Gregory Mannarino of TradersChoice.net says the Fed is signaling a market top in housing. It pumped up the mortgage-backed securities it bought by inflating another housing bubble. Now, the Fed is going to dump the securities on the market. Mannarino predicts housing prices will fall and interest rates will rise.