Health of Housing market

After months of the gloom-and-doom reports about the housing market, recent months have finally started to show evidence of some positive movement in the sector. But there are still plenty of economists forecasting an endless downturn for the weakened housing and mortgage markets.

Price Recovery Not Until 2011?

Chief economist for the government-backed mortgage giant Freddie spokesman proclaimed that though there are a few signs of healing in the housing market, home prices may continue to drop through 2010. He predicted that it will be 2011 before we see any improvement or increase in these national U.S. house price measures.

He also concluded that the housing market will remain on its weakened course for at least the next several months as foreclosures and unemployment continue to rise. The current market suffers from a large of inventory. These large numbers of homes distort the median selling price and the true value of the properties.

The good news however is lowest mortgage rates, speaking of the record lows on long-term mortgages. Such rates promote affordability for home buyers and provide refinancing opportunities for many owners who have loans.

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