"Inventory, to a degree, can be a wash if the mortgage buyer comes in, he said. So, you can get more sellers out there. I'm not sure if that's going to create more inventory outside of that first rush, because if you get that seller, he's going to wait for that buyer to come in and then that person buys the house, inventory is a washout."
"I think that it could be a problem for the bond market, Habib said. That's because you've got $300 billion in additional money that's been taken in. Without that revenue, you'd have to issue more debt. So, the bond market is very sensitive to additional debt issuance, and that's a significant amount. Now, there are other measures that the President could take with appeals and so on so I'm not 100% sure as to which way it's going to go."
Housing demand may rise while for-sale inventory remains constrained. Capital gains rule adjustments could prompt an initial increase in listings but may not expand net inventory if sellers wait for buyers and sales replace listings. Inflation-adjusted capital gains limits would cover more homeowners and could encourage sales by raising the exemption threshold. A pending Supreme Court decision on tariffs could remove about $300 billion in tariff revenue, forcing additional Treasury debt issuance. Increased debt issuance would pressure the bond market and could influence interest rates. Foreign holdings of U.S. Treasuries, including China and Japan, are a related market concern.
Read at www.housingwire.com
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