March’s publication summarizes two articles about the U.S. housing market. The first discusses how various forces, including constrained credit availability and lower homeownership rates, are likely to put downward pressure on house prices going forward. The second suggests that a self-reinforcing recovery in U.S. house prices, helped by easing legal and regulatory pressures, could boost the prices of securities such as non-Agency mortgage bonds.

• “More House Renters,” by A. Gary Shilling, February 2012
• “The Road to a Self-Reinforcing Housing Recovery: The Outlook for U.S. Housing and Non-Agency Mortgages,” by Tom Teles, Dennis Kraft, and Matthew Maciaszek, Goldman Sachs Asset Management, February 2012