1458 ET - Investors grew worried about inflation during the trade war flare-up, but the U.S. housing market is likely to counter price pressures elsewhere, Angel Oak's Clayton Triick says. He expects new-home supply to increase, cooling prices and helping keep the Fed on track to cut rates. Housing market dynamics also make investing in mortgages an attractive option for fixed-income investors. Triick is particularly bullish on higher-yielding mortgages not backed by Fannie Mae and Freddie Mac. "You are getting elevated yields and the fundamentals of housing are still really strong," he says. A drop on house prices could increase defaults, but Triick says it is unlikely to happen. (paulo.trevisani@wsj.com; @ptrevisani)
(END) Dow Jones Newswires
February 05, 2025 14:58 ET (19:58 GMT)
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