Following on from this morning’s post on how Wall St has re-inflated US housing, here is Westpac’s Elliot Clarke on the role of investors in US housing. I see two possible ways this can go. If Wall St is driving the rebound through rental securitisations then it could run despite rising interest rates because it’s a play on reaping the financial packaging fees. But the asset remains in the hands of the bank et al there has to be a high risk of run on the market when rates turn (or taper arrives). A tipping point scenario if I’ve ever seen one.
via Will US investors pull the pin on housing? | | MacroBusiness.
