HOUSING MARKET CONTINUES TO TAKE A PLUNGE. WHY IT’S THE BEST TIME TO BUY A HOME!
The housing market, whose collapse pulled the economy into recession in late 2007, is stalling again! In major markets across the country, home sales are deteriorating, inventories of unsold homes are piling up.
While the housing downturn dragged the economy into a recession nearly three years ago, now it is the economy that is pulling down housing, says economist Patrick Newport at IHS Global Insight. Without sustained job growth, the housing market likely won’t improve.
Last week, the average rate on a 30-year fixed-rate mortgage was quoted at 4.57%, according to Freddie Mac, the lowest since its survey began in 1971. But demand for home-purchase mortgages sits near 14-year lows, according to the Mortgage Bankers Association, down 44% over the past two months.Low mortgage rates and falling prices have made homes more affordable in many markets than at any time in the past decade.
More broadly, the housing market faces two big problems: too many homes and falling demand. More than seven million borrowers are 30 days or more past due on their mortgage payments or in some stage of foreclosure. Rising foreclosures will keep pressure on prices as banks put more homes on the market.
Potential buyers remains held back because they never seen the amount of homeowners who are underwater, or who owe more than their homes are worth.
Mortgage-finance giants Fannie Mae and Freddie Mac also are starting to push more repossessed homes onto the market. The companies owned 164,000 homes at the end of March, up 80% from a year ago.
{ 1 comment… read it below or add one }
HOUSING MARKET CONTINUES TO TAKE A PLUNGE. WHY IT?S THE BEST TIME TO BUY A HOME!…
I found your entry interesting do I’ve added a Trackback to it on my weblog :)…
Leave a Comment