The housing market is on a “precipice” and it’s unclear which way it’ll tip, Whitney Tilson of T2 Partners said on Monday’s Fast Money.
Best known for predicting the mortgage meltdown, the widely followed money manager said low mortgage rates are the main thing supporting the housing market right now.
And with mortgage rates at historic lows, we thought it was a good time to get his outlook on the broad housing sector.
So what moves is he making?
Like he told us in May of 2009, Tilson is still playing the homebuilders short; he thinks they are in trouble. Although home sales and affordability are good, he's more concerned that 8 million people aren’t paying their mortgages.
If those homeowners are forced into foreclosure it will created a glut of inventory in the real estate market. "A wave of foreclusure would drop housing prices and that's a bad scenario for homebuilders," he says.
For more on Tilson’s take on the housing market, watch the video here.
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