Fed taper in 2014 could put US housing recovery at risk, says DBS economist
The United States Federal Reserve's decision on pulling back its monetary stimulus may have a profound impact on its housing sector and the world markets next year, according to DBS.
Its chief economist David Carbon told a briefing today that if Fed tapering occurs, the US housing market is most at risk of seeing negative results.
He noted that when the Fed started talking about tapering earlier this year, mortgage applications fell by 15 per cent since April this year.
Any actual tapering, said Mr Carbon, could cause mortgage applications, sales, construction and prices to drop.