A leading analyst sees many changes needed in the mortgage market. One of those changes is higher interest rates.
Meredith Whitney, founder and chief executive officer of Meredith Whitney Advisory Group, talked about rates Wednesday on CNBC.
She notes that the Federal Reserve is evenly divided between raising rates and not raising rates.
But low rates haven’t done much for the mortgage market because borrowers can’t qualify or don’t have enough equity.
“I’m of the camp that rates should be higher, not lower,” Whitney said.
She said that banks need to price for risk in a way that works for both borrowers and lenders.
Whitney said the industry needs a re-pricing, and the 30-year mortgage is a bad option that isn’t even available in other countries.
Whitney sees Texas as a great place to start a business.