Tracy Chen shared with MarketWatch that she believes the U.S. housing market would not crash like during the global financial crisis in 2008.
Tracy Chen is a portfolio manager in the global fixed-income team at Brandywine Global Investment Management.
- According to Chen, the housing market showed signs of recovery earlier this year when mortgage rates dropped to around 6% in January.
- Chen added that the homebuilders are feeling optimistic as foot traffic from potential buyers has begun to increase.
- Regarding her view of the housing market, she said it stuck due to low buyer affordability and seller unwilling to budge on the price.
- She believes the Fed will have to raise the benchmark rate above 5%, and the effect of high inflation and tighter lending standards will be felt in consumer and subprime automobile loans.
