MSN Money - Why there is no housing bubble - Jubak's Journal

Adding to the confusion, we have this guy saying that while there is a correction coming, its far off in the future. This, my dear children, is why I can't make a #$@ decision. Experts are useless unless there's only one of them, or they're in accord.



MSN Money - Why there is no housing bubble - Jubak's Journal: "Housing bubble? What housing bubble?

With the 10-year U.S. Treasury bond yielding below 4% and 30-year mortgages available at 5.1%, there isn’t a housing bubble

Mind you, I'm not saying that U.S. consumers don't have too much debt, or that the U.S. economy isn't dangerously dependent on the housing sector for growth, or that all the money sloshing around the globe isn't encouraging dangerous speculation.

But those are different problems from the one getting all the headline attention at the moment.

It's just that, for all the teeth-gnashing and pundit-moralizing, we really don't have a housing bubble that's anywhere near bursting. Current 10-year interest rates are just too low. And I certainly don't see interest rates rising enough in the next year or so to burst a bubble, either"