Investors who are concerned about the future of the housing market in the United States are increasingly concerned about a “big mistake” that could lead to a bubble, according to a new survey.
The survey from Credit Suisse Research Group, released Tuesday, said investors are more concerned about housing as they wait to see if the Federal Reserve raises interest rates, as it did last week.
It said the Fed has been slow to move to raise rates in recent weeks and that many investors believe the Fed is too cautious in raising rates, particularly after it signaled a plan to raise the rate by 0.25 percentage points.
“This is an issue that we are seeing in the market, which is a concern, given the timing of the Fed’s recent rate increase, and especially the risk of a bubble,” Credit Suse’s John Naughton said in a statement.
The credit-rating firm said the housing-market risk is greater than investors had expected, and is particularly acute in the Midwest and the Northeast.
The U.S. housing market has experienced a sharp slowdown in recent years, as housing prices have fallen sharply and homeownership rates have dropped below a record high.
It is one of the worst periods of the Great Recession.
But some analysts have warned that a recession in the U.N. refugee camp in the Syrian city of Aleppo could spark a housing bubble in the region, which has been ravaged by war and the civil war.
The International Monetary Fund has estimated that the U,S.
could lose $1 trillion of its annual gross domestic product (GDP) in 2020 because of a housing market downturn.
The Federal Reserve has said that it expects the economy will expand in 2020, and that it would be “unwise to discount the long-term prospects of the economy.”
“There’s a huge amount of anxiety and concern about the housing sector, especially as it relates to the housing recovery,” said Ben Sommers, chief investment officer at Pimco Inc. in New York.
He added that the Fed should not be expected to change course.
The Fed has raised interest rates three times since the Great Depression.
In the last two years, it has raised rates three or more times.
The biggest increase came in August, when the Fed cut its benchmark overnight lending rate to 0.75 percentage points, from 1.25 percent.
The median of all 10 S&P 500 stocks rose 0.7 percent in that time.
Investors are particularly worried about the U-verse, the tech-industry industry that dominates the housing and consumer-goods market.
They are concerned that a surge in demand for U-Hauls and other delivery vehicles could result in higher prices for homes.
“The concern is that U-hauls are driving prices higher, which means that people are paying more, and they’re not being able to afford the homes they want,” Sommer said.
Sommars said the industry is now focused on building delivery robots and other autonomous delivery systems, which could help boost demand for homes, which he said is currently driven by a combination of a weak economy and a rise in rents.
“They’re not just building a delivery robot, they’re also building a robot that can do all of the delivery work and that’s the job of the UHaul,” he said.
“That’s why they’re doing it now.
It’s not going to be as quick as it is right now, but they’re definitely looking at that.”
Credit Suce has not released its full results for the survey, but Sommes said it will include information on the UAW, the country’s largest union, which last week announced that it will raise wages and pensions.
It also will include data on how much people are spending on housing and how much they earn in a given month.
The group has been urging the Fed to raise interest rates in the past two years.
“As we’ve seen in the last few months, the Fed appears to have been slow in raising the rates,” Sompers said.