Expert who predicted 2008 mortgage crisis reveals the housing ‘lifeline’ if market doesn’t get moving

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If Fed rates don't decrease by at least 75 basis points soon, untapped home equity potential could serve as the 'lifeline' for the U.S. economy, according to Meredith Whitney.

After making a name for herself for forecasting the 2008 subprime mortgage crisis, Meredith Whitney has a new view on what the Federal Reserve should do amid a pricey and stale real estate market. "Rates could come down, but it's going to take the Fed to lower rates dramatically. And I think probably 75, 100 basis points," the Meredith Whitney Advisory Group CEO said in an exclusive interview on "The Claman Countdown," Monday.

Lower interest rates could ding savers, but borrowers would likely face smaller debt payments on everything from credit cards to mortgages to student loans. Higher rates have helped push the average rate on 30-year mortgages above 7% for the first time in years. Borrowing costs for everything from home equity lines of credit, auto loans and credit cards have also spiked.

 

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