Saturday, September 20, 2008

Yun Criticizes Bernanke & Media on Negative Stories on Hounsing

Yun criticizes Bernanke & media on negative stories on hounsing. The Times Union reports:

The reason for that gap, in Yun's view, is eroding consumer confidence largely caused by negativity, both in the media and elsewhere, about the market. Yun, by contrast, is more optimistic, believing the housing slump is nearly over.

"The winter months are always weaker (for home sales), but this winter will be better than last winter," he said. "There is this great pent-up demand that cannot be held back any further."

Events of the last few days might make such economic optimism seem far-fetched. And even Federal Reserve Chairman Ben Bernanke has predicted continuing housing market weakness.

Yun, in fact, on Monday rebuked Bernanke for such predictions, saying if it's inappropriate to forecast stock or oil prices, "it is inappropriate to comment on home prices, because people react to that."

To applause from his Realtor audience, Yun said he had made that point in a letter to Bernanke.

And he rued that former Fed Chairman Alan Greenspan is also issuing more negative housing market predictions.

"But there's little that can be done about that," Yun said.

Monday, September 15, 2008

Yun Call New GSE Lending Standards 'Overly Stringent'

"Overly stringent lending criteria imposed by Fannie Mae and Freddie Mac in the past month no doubt held back contract signings," said Lawrence Yun, NAR chief economist. (Chattanooga RE 9/15/08)

Was he complaining about the loose lending standards, which led to the collapse of Fannie & Freddie, during the boom years?