Housing Market Sure to Double-Dip: Whitney
Mortgage Problems
"The housing market surely will double dip," Whitney told "Worldwide Exchange."
Government programs to support housing have been "murky" and when the modifications caused by them come to an end, a lot of supply may come to the market and that's when the real-estate market is likely to go down, she explained.
Hopes that an improvement in liquidity and continuing investment from China in US assets will prop up mortgage-backed securities (MBS) and Treasurys are exaggerated, Whitney also said.
"The asset classes of MBS and Treasurys are priced for a material correction in my opinion," she said. "The only buyers of agency MBS are the Fed and banks so you see how precarious that market is."
"If the Fed pulls back, that's a really big deal... because there's no substitute buyer."
