The U.S. housing market could be facing a double-dip recession, Meredith Whitney, CEO of Meredith Whitney Advisory Group, told CNBC Tuesday.
The catalyst, according to Whitney, is the Fed’s pulling back on purchasing the MBS.
“The asset classes of MBS and Treasurys are priced for a material correction in my opinion,” she said. “The only buyers of agency MBS are the Fed and banks, so you see how precarious that market is..If the Fed pulls back, that’s a really big deal… because there’s no substitute buyer.”
