Balance Sheet Normalization

Markets Wobbling As Fed Normalization Hits $30 Billion Per Month In Q2

The markets were wobbling again this week, but regardless, the Fed normalization will hit $30 billion per month in April. I must confess that I get a good laugh when I hear market apologists and real estate pundits talk up the magnificent economy and housing market we are blessed with in Texas. Yes, things are pretty good here in the Lone Star State, and the DFW housing market still seems to have legs. Unfortunately the real economy is not nearly as robust as many talking heads and sell-side practitioners would have you believe. The March employment [...]

Denton County Real Estate 2018: All Eyes On The Fed

As we embrace the new year, and the freezing temperatures that arrived with it, Denton County real estate prices continued to climb higher as sales continue to grow at a measured pace. The housing boom seen during the last 4-5 years has been impressive by any standards. As the Fed continues its much anticipated balance sheet "normalization", there is a lot at stake for local real estate markets.  The U.S. housing market is now heavily dependent on Fed stimulus, in the form of artificially depressed mortgage interest rates, and the artificial "wealth effect" created by [...]

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