Fed mortgage securities purchases draw fire in white-hot US housing market

0
18

Homes are selling at a rapid pace throughout much of the U.S. due to a market imbalance many say the Fed has accelerated.

Source: DreamPictures/Photodisc via Getty Images

Aaron Layman has never seen a more competitive housing market.

Layman, a real estate broker and housing analyst based in Denton County, Texas, said homes for sale in the Dallas-Fort Worth area are selling in about six days on average, compared to the typical 45-day average. A rush of speculators has flooded the market with all-cash offers and whittled inventory down to about 15% of typical levels. And modest, single-family homes are going for 20% more than their listing price in a matter of hours.

“It’s just crazy. Houses will get listed on Thursday and they’ll be looking at 20 offers by Sunday evening,” Layman said in an interview.

SNL Image

Those same conditions are playing out in housing markets across the U.S. as historically low mortgage rates, shifting…

Read more…