DoubleLine Report

The Real Estate Crossroads Between Rates and Prices


Pixabay CC0 Public Domain

Author: Funds Society, Miami

  1. According to Ken Shinoda, Portfolio Manager at DoubleLine who signs the report, "this naive theory" treats housing prices as analogous to fixed-coupon bond prices, which move inversely with interest rates
  2. More affordable financing could incentivize would-be sellers who have been stubbornly locked into 3%-4% mortgages. There is a 'magic number for fixed mortgage rates' that could unfreeze the housing market
  3. In the case of the "magic number," the expert expects sideways price behavior. He anticipates that the supply would be good for the market, good for both buyers and sellers