There was recent news that Warren Buffett is bullish on the US housing market and is investing in it on the belief that falling housing priced in the US will change course within a year and start heading back upward again. Here is a bit from the HousingWire piece on the subject:
Warren Buffett anticipates a recovery in the housing market to begin within one year and the investment guru said in his biennial letter to investors that mortgages written by his subsidiaries performed better than most of the competition through the financial crisis.
Buffett said the recovery hinges on durable, common sense underwriting based on affordability for mortgage borrowers. …
He added that as the housing market pushes toward a recovery, home ownership can still make sense for many Americans with lower prices and interest rates. Future housing policy, he said, should be sculpted from lessons learned during the downturn.
“But a house can be a nightmare if the buyer’s eyes are bigger than his wallet and if a lender – often protected by a government guarantee – facilitates his fantasy,” Buffett said. “Our country’s social goal should not be to put families into the house of their dreams, but rather to put them into a house they can afford.”
A recovery in housing prices is good news for US homeowners. Of course odds are that mortgage interest rates will be significantly higher next year at this time than they are now. Contact us in the sidebar if you would like to learn about the government-backed refinance programs that are available now.