| Pub Date: 6/25/2008 3:00:44 PM | | | It seems that every day there is another news story that reports a different view on the housing market. In article from Reuters David Lowman, chief executive officer of home lending at JPMorgan Chase, states that the downturn of the housing and mortgage market has yet to reach its midpoint. That is pretty scary considering all the false speculation that we are on our way up. Buyers are sitting on the sidelines due to the highest home loan rates in nine months and strict lending standards, despite a 16% national home price decline from 2006. This has been the worst downturn since the WWII era, and the price declines and mortgage defaults are the worst on records. It is hard to feel secure when everything seems like it is falling apart. Job losses and falling prices continue to intensify the risk of foreclosure, as does interest rate resets. To return to pre-housing boom prices, a few things need to happen like large price declines, interest rates reductions, rent deflation, and unprecedented real income growth. | |  | | Subscribe to this blog |
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