The Real Deal Miami

Will Fed back out lead to double dip?

March 31, 2010 03:42PM

As fears over a real estate double dip swirl, the Business Insider pegs the anxiety to a few main sources: the end of the Federal Reserve’s mortgage buy-up and Fannie Mae’s reluctance to finance certain home loans. And with the mortgage market officially ending a “post-Fed period,” as reporter Jon Weisenthal calls it, April 1, industry experts are wondering just how much pain the market will endure. From Weisenthal’s perspective, this could directly lead to the double dip, with “higher rates, higher mortgages, slower sales.”