Whitney: The housing market surely will double dip


Meredith Whitney was on CNBC in London this morning. She concentrates her comments on mortgages and banking. She sees the winter lull as a harbinger of renewed softness in the housing market.

Note: the FOMC statement today reiterated the ending dates for MBS purchases. Let’s see how this plays out for mortgage rates in April and beyond.


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Whitney is bullish on some financials, namely Visa (V) and Mastercard (MC). However, in the video below she talks a lot about the coming supply of houses which are now receiving modifications. Whitney believes these modifications will fail, forcing those houses onto the market and upsetting the supply-demand balance. She notes that banks are under-reserved for another leg down in the housing market, meaning the credit writedowns from a second wave will impair lending capital. The money quote comes right at the end of the second clip. Look for it.

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