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Fed''s rate hike gives real estate agents a breather.

Publication: San Diego Business Journal
Publication Date: 27-SEP-04
Format: Online
Delivery: Immediate Online Access
Full Article Title: Fed''s rate hike gives real estate agents a breather.(Opinion)

Article Excerpt
Alan Greenspan pulled off a minor miracle recently when he almost single-handedly took the white-hot heat out of the Southern California real estate market without damaging the national economy. Whether his actions were purposeful or inadvertent is immaterial; it is the result that counts.

Lenders had been attempting since March to cool the frantic real estate market by tightening appraisals, but the market was so torrid that buyers simply came up with the difference between appraisal and agreed-upon price, leaving the lender's appraisal, and rationality, behind.

Lenders assumed Greenspan and the Fed would raise interest rates more than they actually did, and the lenders found they could easily absorb...

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