Gov’t to target 4.5% for mortgages

[(former)FormerSanDiegan]

[quote=DWCAP]
I guess the real issue is that most of us were hoping for “our” time, a time when people who saved would be rewarded. But when is life ever fair? [/quote]

I am having a hard time figuring out why the prudent saver who is looking for a house for his/her family to live in is not being rewarded. If you have been waiting out the bubble and have been saving, your time is arriving. Recognize it.

Consider this, if you have been sitting out the bubble :

1. Prices down 25-40% in San Diego since 2005, currently at inflation-adjusted levels last seen in ~2001.

2. Interest rates are down to the 5% or lower levels.

Assuming prices have dropped by 35% or so, and mortgage costs have dropped by at least 20% for fixed rate mortgages. That is nearly a 50% drop in monthly costs for a comparable home.

If you have been sitting out the bubble, looking for an opportunity to prudently deploy your savings and are whining now about these circumstances, you cannot be helped.

[peterb]

Right now, the industry is still in fear mode due to massive default levels. Risk has reasserted itself into the mortgage business. This will probably subside in a couple of years at which point the spector of deflation will be extremely obvious to everyone and their mother. Rates will come down as they do in all contractions. If you consider that we’re probably in negative CPI territory at this point, 4.5% will be the old 6.5%. And there ya go. But there’s the tinfoil camp saying the US$ will collapse in June. But I dont buy it, they always over react. We’ve had devistating collapses in the past and the world reserve currency alwasy comes out on top. And that’s the US$.

[peterb]

Right now, the industry is still in fear mode due to massive default levels. Risk has reasserted itself into the mortgage business. This will probably subside in a couple of years at which point the spector of deflation will be extremely obvious to everyone and their mother. Rates will come down as they do in all contractions. If you consider that we’re probably in negative CPI territory at this point, 4.5% will be the old 6.5%. And there ya go. But there’s the tinfoil camp saying the US$ will collapse in June. But I dont buy it, they always over react. We’ve had devistating collapses in the past and the world reserve currency alwasy comes out on top. And that’s the US$.

[peterb]

Right now, the industry is still in fear mode due to massive default levels. Risk has reasserted itself into the mortgage business. This will probably subside in a couple of years at which point the spector of deflation will be extremely obvious to everyone and their mother. Rates will come down as they do in all contractions. If you consider that we’re probably in negative CPI territory at this point, 4.5% will be the old 6.5%. And there ya go. But there’s the tinfoil camp saying the US$ will collapse in June. But I dont buy it, they always over react. We’ve had devistating collapses in the past and the world reserve currency alwasy comes out on top. And that’s the US$.

[peterb]

Right now, the industry is still in fear mode due to massive default levels. Risk has reasserted itself into the mortgage business. This will probably subside in a couple of years at which point the spector of deflation will be extremely obvious to everyone and their mother. Rates will come down as they do in all contractions. If you consider that we’re probably in negative CPI territory at this point, 4.5% will be the old 6.5%. And there ya go. But there’s the tinfoil camp saying the US$ will collapse in June. But I dont buy it, they always over react. We’ve had devistating collapses in the past and the world reserve currency alwasy comes out on top. And that’s the US$.

[peterb]

Right now, the industry is still in fear mode due to massive default levels. Risk has reasserted itself into the mortgage business. This will probably subside in a couple of years at which point the spector of deflation will be extremely obvious to everyone and their mother. Rates will come down as they do in all contractions. If you consider that we’re probably in negative CPI territory at this point, 4.5% will be the old 6.5%. And there ya go. But there’s the tinfoil camp saying the US$ will collapse in June. But I dont buy it, they always over react. We’ve had devistating collapses in the past and the world reserve currency alwasy comes out on top. And that’s the US$.

[sdrealtor]

Thank you FSD for injecting some sanity. Going back over 2 years I have been saying that those with the doomsday mentality will be to paralyzed by fear to act when the time comes. This is not an endorsement to buy now as that is a personal decision for everyone to make for themselves. However, with the decline in prices in many areas and interest rates what many of you have hoped for is here or will be arriving soon. You can choose to live in fear or you can get on with the business of living life and enjoying it to its fullest. Kids grow up and life passes us by in the wink of an eye.

Both of us SD realtor guys have been crowing on for over a year than heroic measures beyond anything we could comprehend were coming. Those measures are here and more are on the way.

For investors, I am now seeing properties with double digit returns. For homebuyers, I am seeing homes that are cheaper to buy than rent. Is it a bottom??? Who knows but probably not. Then again who really ever catches an absolute bottom and gets exactly what they want. Many homes in places like Oceanside, Chula Vista, Escondido, Vista etc are likely within 10% of their bottoms at prices where even another 10% decline on top of that wouldnt be monumental. I’m as negative a guy as there is out there selling RE these days and my clients are looking in earnest now to find what they want. It may come next week or next year but when it does at least we’ll be out there to jump on it when it does.

[sdrealtor]

Thank you FSD for injecting some sanity. Going back over 2 years I have been saying that those with the doomsday mentality will be to paralyzed by fear to act when the time comes. This is not an endorsement to buy now as that is a personal decision for everyone to make for themselves. However, with the decline in prices in many areas and interest rates what many of you have hoped for is here or will be arriving soon. You can choose to live in fear or you can get on with the business of living life and enjoying it to its fullest. Kids grow up and life passes us by in the wink of an eye.

Both of us SD realtor guys have been crowing on for over a year than heroic measures beyond anything we could comprehend were coming. Those measures are here and more are on the way.

For investors, I am now seeing properties with double digit returns. For homebuyers, I am seeing homes that are cheaper to buy than rent. Is it a bottom??? Who knows but probably not. Then again who really ever catches an absolute bottom and gets exactly what they want. Many homes in places like Oceanside, Chula Vista, Escondido, Vista etc are likely within 10% of their bottoms at prices where even another 10% decline on top of that wouldnt be monumental. I’m as negative a guy as there is out there selling RE these days and my clients are looking in earnest now to find what they want. It may come next week or next year but when it does at least we’ll be out there to jump on it when it does.

[sdrealtor]

Thank you FSD for injecting some sanity. Going back over 2 years I have been saying that those with the doomsday mentality will be to paralyzed by fear to act when the time comes. This is not an endorsement to buy now as that is a personal decision for everyone to make for themselves. However, with the decline in prices in many areas and interest rates what many of you have hoped for is here or will be arriving soon. You can choose to live in fear or you can get on with the business of living life and enjoying it to its fullest. Kids grow up and life passes us by in the wink of an eye.

Both of us SD realtor guys have been crowing on for over a year than heroic measures beyond anything we could comprehend were coming. Those measures are here and more are on the way.

For investors, I am now seeing properties with double digit returns. For homebuyers, I am seeing homes that are cheaper to buy than rent. Is it a bottom??? Who knows but probably not. Then again who really ever catches an absolute bottom and gets exactly what they want. Many homes in places like Oceanside, Chula Vista, Escondido, Vista etc are likely within 10% of their bottoms at prices where even another 10% decline on top of that wouldnt be monumental. I’m as negative a guy as there is out there selling RE these days and my clients are looking in earnest now to find what they want. It may come next week or next year but when it does at least we’ll be out there to jump on it when it does.

[sdrealtor]

Thank you FSD for injecting some sanity. Going back over 2 years I have been saying that those with the doomsday mentality will be to paralyzed by fear to act when the time comes. This is not an endorsement to buy now as that is a personal decision for everyone to make for themselves. However, with the decline in prices in many areas and interest rates what many of you have hoped for is here or will be arriving soon. You can choose to live in fear or you can get on with the business of living life and enjoying it to its fullest. Kids grow up and life passes us by in the wink of an eye.

Both of us SD realtor guys have been crowing on for over a year than heroic measures beyond anything we could comprehend were coming. Those measures are here and more are on the way.

For investors, I am now seeing properties with double digit returns. For homebuyers, I am seeing homes that are cheaper to buy than rent. Is it a bottom??? Who knows but probably not. Then again who really ever catches an absolute bottom and gets exactly what they want. Many homes in places like Oceanside, Chula Vista, Escondido, Vista etc are likely within 10% of their bottoms at prices where even another 10% decline on top of that wouldnt be monumental. I’m as negative a guy as there is out there selling RE these days and my clients are looking in earnest now to find what they want. It may come next week or next year but when it does at least we’ll be out there to jump on it when it does.

[sdrealtor]

Thank you FSD for injecting some sanity. Going back over 2 years I have been saying that those with the doomsday mentality will be to paralyzed by fear to act when the time comes. This is not an endorsement to buy now as that is a personal decision for everyone to make for themselves. However, with the decline in prices in many areas and interest rates what many of you have hoped for is here or will be arriving soon. You can choose to live in fear or you can get on with the business of living life and enjoying it to its fullest. Kids grow up and life passes us by in the wink of an eye.

Both of us SD realtor guys have been crowing on for over a year than heroic measures beyond anything we could comprehend were coming. Those measures are here and more are on the way.

For investors, I am now seeing properties with double digit returns. For homebuyers, I am seeing homes that are cheaper to buy than rent. Is it a bottom??? Who knows but probably not. Then again who really ever catches an absolute bottom and gets exactly what they want. Many homes in places like Oceanside, Chula Vista, Escondido, Vista etc are likely within 10% of their bottoms at prices where even another 10% decline on top of that wouldnt be monumental. I’m as negative a guy as there is out there selling RE these days and my clients are looking in earnest now to find what they want. It may come next week or next year but when it does at least we’ll be out there to jump on it when it does.

[NotCranky]

This is just something to add to this thread.I thought i had read that the NAR was a group lobbying of for this reduction. I found an article related:

Home prices down 9.3% in 2008: NAR
Realtors lobby for housing stimulus, claim there’s no time to waste
By Amy Hoak, MarketWatch
Last update: 3:50 p.m. EST Nov. 7, 2008Comments: 115ORLANDO, Fla. (MarketWatch) — The projected 9.3% national decline in home prices this year would be the sharpest drop since the National Association of Realtors started keeping records in 1968, the group’s chief economist said Friday.
It’s also probably the biggest drop since the Great Depression, based on data from other sources, added Lawrence Yun, chief economist for industry group, speaking at the Realtors’ annual conference in Orlando.

To bring stability to the housing market, it’s imperative to work off the massive amount of for-sale housing inventory, he said. But with Americans tightening their purse strings and also feeling the shock of the huge stock market declines in October, there’s a concern that fearful consumers will scrap any plans they had to buy a home in the near future.
In response to some of the challenges home buyers are facing, the industry group is lobbying lawmakers to adopt incentives that would make buying more attractive.
“Given the sentiment in Washington, and also with a new president coming in, President Obama — and he has indicated that he is favoring some sort of economic stimulus — we believe that the stimulus package should be focused on housing because we cannot have solid, sound economic recovery without housing market recovery,” Yun said.
Housing stimulus
In order to help “Joe the home buyer,” NAR is making several suggestions:
An interest-rate buy down, in which the government would subsidize a portion of a home buyer’s mortgage interest rate. A recent analysis by NAR found that a reduction of interest rates by 1 percentage point could result in 840,000 additional home sales and reduce the inventory of homes for sale by 20%.
Eliminate the provision that requires users of the first-time home buyer tax credit, enacted earlier this year, to repay the money over time and extend that incentive to all home buyers.
Make the increased conforming mortgage limits permanent. Rates on conforming jumbo loans haven’t improved as much as was hoped, partly because mortgage investors aren’t certain whether these higher limits will remain, Yun said. Find out what next year’s conforming loan limits will be.
The Realtors also criticized the government’s use of the $700 billion rescue package funds.
“The U.S. Treasury and Congress need to work together to ensure that the American people benefit from the economic recovery plan,” said NAR president Richard F. Gaylord, in a news release. “The Treasury Department has gotten off track by focusing too much attention and stimulus money on Wall Street and banks that are in turn using the money for mergers and acquisitions. The administration needs to get back to the original intent of the plan — stabilizing the mortgage and housing markets — to help families avoid foreclosure.”
And there’s no time to waste, Gaylord said.
The statistics
Home prices are expected to reverse trend and increase 1.1% in 2009 and 5% in 2010, Yun said in his economic forecast.
That’s not much consolation to those homeowners who “purchased at the wrong time,” when home prices were at their highest, Yun said. For them, it may take five to seven years for their home values to recover — and those who can make their payments and don’t have to move can be expected to stay put until their mortgages are no longer underwater, he said.
In some of the hardest hit areas of the country — including Las Vegas, Phoenix and many California and Florida markets — prices are off by more than 20% this year, Yun said. Other areas, including Denver and Houston, are likely to see price gains for 2008.
Nationally, existing-home sales are expected to total 5.02 million in 2008, rising to 5.32 million in 2009 and 5.62 million in 2010, according to the forecast. New-home sales are expected to total 487,000 in 2008 and 413,000 in 2009, before rising to 520,000 in 2010.
But here’s a reality check: About 35% to 40% of all transactions recently have been short sales and foreclosures, Yun said. And that’s just a national average — in certain areas the percentage is much higher, he added.
The NAR projects the 30-year fixed-rate mortgage to average 6.2% in the fourth quarter of 2008, rise to 6.5% during the second half of 2009 and hit an average 6.7% in 2010.
It expects unemployment to creep up, averaging 6.4% in the fourth quarter, and 7.0% in 2009. Even so, it’s possible for home sales to rise because those who do have a steady job are able to take advantage of lower home prices, Yun said.
Amy Hoak is a MarketWatch reporter based in Chicago.

[NotCranky]

This is just something to add to this thread.I thought i had read that the NAR was a group lobbying of for this reduction. I found an article related:

Home prices down 9.3% in 2008: NAR
Realtors lobby for housing stimulus, claim there’s no time to waste
By Amy Hoak, MarketWatch
Last update: 3:50 p.m. EST Nov. 7, 2008Comments: 115ORLANDO, Fla. (MarketWatch) — The projected 9.3% national decline in home prices this year would be the sharpest drop since the National Association of Realtors started keeping records in 1968, the group’s chief economist said Friday.
It’s also probably the biggest drop since the Great Depression, based on data from other sources, added Lawrence Yun, chief economist for industry group, speaking at the Realtors’ annual conference in Orlando.

To bring stability to the housing market, it’s imperative to work off the massive amount of for-sale housing inventory, he said. But with Americans tightening their purse strings and also feeling the shock of the huge stock market declines in October, there’s a concern that fearful consumers will scrap any plans they had to buy a home in the near future.
In response to some of the challenges home buyers are facing, the industry group is lobbying lawmakers to adopt incentives that would make buying more attractive.
“Given the sentiment in Washington, and also with a new president coming in, President Obama — and he has indicated that he is favoring some sort of economic stimulus — we believe that the stimulus package should be focused on housing because we cannot have solid, sound economic recovery without housing market recovery,” Yun said.
Housing stimulus
In order to help “Joe the home buyer,” NAR is making several suggestions:
An interest-rate buy down, in which the government would subsidize a portion of a home buyer’s mortgage interest rate. A recent analysis by NAR found that a reduction of interest rates by 1 percentage point could result in 840,000 additional home sales and reduce the inventory of homes for sale by 20%.
Eliminate the provision that requires users of the first-time home buyer tax credit, enacted earlier this year, to repay the money over time and extend that incentive to all home buyers.
Make the increased conforming mortgage limits permanent. Rates on conforming jumbo loans haven’t improved as much as was hoped, partly because mortgage investors aren’t certain whether these higher limits will remain, Yun said. Find out what next year’s conforming loan limits will be.
The Realtors also criticized the government’s use of the $700 billion rescue package funds.
“The U.S. Treasury and Congress need to work together to ensure that the American people benefit from the economic recovery plan,” said NAR president Richard F. Gaylord, in a news release. “The Treasury Department has gotten off track by focusing too much attention and stimulus money on Wall Street and banks that are in turn using the money for mergers and acquisitions. The administration needs to get back to the original intent of the plan — stabilizing the mortgage and housing markets — to help families avoid foreclosure.”
And there’s no time to waste, Gaylord said.
The statistics
Home prices are expected to reverse trend and increase 1.1% in 2009 and 5% in 2010, Yun said in his economic forecast.
That’s not much consolation to those homeowners who “purchased at the wrong time,” when home prices were at their highest, Yun said. For them, it may take five to seven years for their home values to recover — and those who can make their payments and don’t have to move can be expected to stay put until their mortgages are no longer underwater, he said.
In some of the hardest hit areas of the country — including Las Vegas, Phoenix and many California and Florida markets — prices are off by more than 20% this year, Yun said. Other areas, including Denver and Houston, are likely to see price gains for 2008.
Nationally, existing-home sales are expected to total 5.02 million in 2008, rising to 5.32 million in 2009 and 5.62 million in 2010, according to the forecast. New-home sales are expected to total 487,000 in 2008 and 413,000 in 2009, before rising to 520,000 in 2010.
But here’s a reality check: About 35% to 40% of all transactions recently have been short sales and foreclosures, Yun said. And that’s just a national average — in certain areas the percentage is much higher, he added.
The NAR projects the 30-year fixed-rate mortgage to average 6.2% in the fourth quarter of 2008, rise to 6.5% during the second half of 2009 and hit an average 6.7% in 2010.
It expects unemployment to creep up, averaging 6.4% in the fourth quarter, and 7.0% in 2009. Even so, it’s possible for home sales to rise because those who do have a steady job are able to take advantage of lower home prices, Yun said.
Amy Hoak is a MarketWatch reporter based in Chicago.

[NotCranky]

This is just something to add to this thread.I thought i had read that the NAR was a group lobbying of for this reduction. I found an article related:

Home prices down 9.3% in 2008: NAR
Realtors lobby for housing stimulus, claim there’s no time to waste
By Amy Hoak, MarketWatch
Last update: 3:50 p.m. EST Nov. 7, 2008Comments: 115ORLANDO, Fla. (MarketWatch) — The projected 9.3% national decline in home prices this year would be the sharpest drop since the National Association of Realtors started keeping records in 1968, the group’s chief economist said Friday.
It’s also probably the biggest drop since the Great Depression, based on data from other sources, added Lawrence Yun, chief economist for industry group, speaking at the Realtors’ annual conference in Orlando.

To bring stability to the housing market, it’s imperative to work off the massive amount of for-sale housing inventory, he said. But with Americans tightening their purse strings and also feeling the shock of the huge stock market declines in October, there’s a concern that fearful consumers will scrap any plans they had to buy a home in the near future.
In response to some of the challenges home buyers are facing, the industry group is lobbying lawmakers to adopt incentives that would make buying more attractive.
“Given the sentiment in Washington, and also with a new president coming in, President Obama — and he has indicated that he is favoring some sort of economic stimulus — we believe that the stimulus package should be focused on housing because we cannot have solid, sound economic recovery without housing market recovery,” Yun said.
Housing stimulus
In order to help “Joe the home buyer,” NAR is making several suggestions:
An interest-rate buy down, in which the government would subsidize a portion of a home buyer’s mortgage interest rate. A recent analysis by NAR found that a reduction of interest rates by 1 percentage point could result in 840,000 additional home sales and reduce the inventory of homes for sale by 20%.
Eliminate the provision that requires users of the first-time home buyer tax credit, enacted earlier this year, to repay the money over time and extend that incentive to all home buyers.
Make the increased conforming mortgage limits permanent. Rates on conforming jumbo loans haven’t improved as much as was hoped, partly because mortgage investors aren’t certain whether these higher limits will remain, Yun said. Find out what next year’s conforming loan limits will be.
The Realtors also criticized the government’s use of the $700 billion rescue package funds.
“The U.S. Treasury and Congress need to work together to ensure that the American people benefit from the economic recovery plan,” said NAR president Richard F. Gaylord, in a news release. “The Treasury Department has gotten off track by focusing too much attention and stimulus money on Wall Street and banks that are in turn using the money for mergers and acquisitions. The administration needs to get back to the original intent of the plan — stabilizing the mortgage and housing markets — to help families avoid foreclosure.”
And there’s no time to waste, Gaylord said.
The statistics
Home prices are expected to reverse trend and increase 1.1% in 2009 and 5% in 2010, Yun said in his economic forecast.
That’s not much consolation to those homeowners who “purchased at the wrong time,” when home prices were at their highest, Yun said. For them, it may take five to seven years for their home values to recover — and those who can make their payments and don’t have to move can be expected to stay put until their mortgages are no longer underwater, he said.
In some of the hardest hit areas of the country — including Las Vegas, Phoenix and many California and Florida markets — prices are off by more than 20% this year, Yun said. Other areas, including Denver and Houston, are likely to see price gains for 2008.
Nationally, existing-home sales are expected to total 5.02 million in 2008, rising to 5.32 million in 2009 and 5.62 million in 2010, according to the forecast. New-home sales are expected to total 487,000 in 2008 and 413,000 in 2009, before rising to 520,000 in 2010.
But here’s a reality check: About 35% to 40% of all transactions recently have been short sales and foreclosures, Yun said. And that’s just a national average — in certain areas the percentage is much higher, he added.
The NAR projects the 30-year fixed-rate mortgage to average 6.2% in the fourth quarter of 2008, rise to 6.5% during the second half of 2009 and hit an average 6.7% in 2010.
It expects unemployment to creep up, averaging 6.4% in the fourth quarter, and 7.0% in 2009. Even so, it’s possible for home sales to rise because those who do have a steady job are able to take advantage of lower home prices, Yun said.
Amy Hoak is a MarketWatch reporter based in Chicago.

[NotCranky]

This is just something to add to this thread.I thought i had read that the NAR was a group lobbying of for this reduction. I found an article related:

Home prices down 9.3% in 2008: NAR
Realtors lobby for housing stimulus, claim there’s no time to waste
By Amy Hoak, MarketWatch
Last update: 3:50 p.m. EST Nov. 7, 2008Comments: 115ORLANDO, Fla. (MarketWatch) — The projected 9.3% national decline in home prices this year would be the sharpest drop since the National Association of Realtors started keeping records in 1968, the group’s chief economist said Friday.
It’s also probably the biggest drop since the Great Depression, based on data from other sources, added Lawrence Yun, chief economist for industry group, speaking at the Realtors’ annual conference in Orlando.

To bring stability to the housing market, it’s imperative to work off the massive amount of for-sale housing inventory, he said. But with Americans tightening their purse strings and also feeling the shock of the huge stock market declines in October, there’s a concern that fearful consumers will scrap any plans they had to buy a home in the near future.
In response to some of the challenges home buyers are facing, the industry group is lobbying lawmakers to adopt incentives that would make buying more attractive.
“Given the sentiment in Washington, and also with a new president coming in, President Obama — and he has indicated that he is favoring some sort of economic stimulus — we believe that the stimulus package should be focused on housing because we cannot have solid, sound economic recovery without housing market recovery,” Yun said.
Housing stimulus
In order to help “Joe the home buyer,” NAR is making several suggestions:
An interest-rate buy down, in which the government would subsidize a portion of a home buyer’s mortgage interest rate. A recent analysis by NAR found that a reduction of interest rates by 1 percentage point could result in 840,000 additional home sales and reduce the inventory of homes for sale by 20%.
Eliminate the provision that requires users of the first-time home buyer tax credit, enacted earlier this year, to repay the money over time and extend that incentive to all home buyers.
Make the increased conforming mortgage limits permanent. Rates on conforming jumbo loans haven’t improved as much as was hoped, partly because mortgage investors aren’t certain whether these higher limits will remain, Yun said. Find out what next year’s conforming loan limits will be.
The Realtors also criticized the government’s use of the $700 billion rescue package funds.
“The U.S. Treasury and Congress need to work together to ensure that the American people benefit from the economic recovery plan,” said NAR president Richard F. Gaylord, in a news release. “The Treasury Department has gotten off track by focusing too much attention and stimulus money on Wall Street and banks that are in turn using the money for mergers and acquisitions. The administration needs to get back to the original intent of the plan — stabilizing the mortgage and housing markets — to help families avoid foreclosure.”
And there’s no time to waste, Gaylord said.
The statistics
Home prices are expected to reverse trend and increase 1.1% in 2009 and 5% in 2010, Yun said in his economic forecast.
That’s not much consolation to those homeowners who “purchased at the wrong time,” when home prices were at their highest, Yun said. For them, it may take five to seven years for their home values to recover — and those who can make their payments and don’t have to move can be expected to stay put until their mortgages are no longer underwater, he said.
In some of the hardest hit areas of the country — including Las Vegas, Phoenix and many California and Florida markets — prices are off by more than 20% this year, Yun said. Other areas, including Denver and Houston, are likely to see price gains for 2008.
Nationally, existing-home sales are expected to total 5.02 million in 2008, rising to 5.32 million in 2009 and 5.62 million in 2010, according to the forecast. New-home sales are expected to total 487,000 in 2008 and 413,000 in 2009, before rising to 520,000 in 2010.
But here’s a reality check: About 35% to 40% of all transactions recently have been short sales and foreclosures, Yun said. And that’s just a national average — in certain areas the percentage is much higher, he added.
The NAR projects the 30-year fixed-rate mortgage to average 6.2% in the fourth quarter of 2008, rise to 6.5% during the second half of 2009 and hit an average 6.7% in 2010.
It expects unemployment to creep up, averaging 6.4% in the fourth quarter, and 7.0% in 2009. Even so, it’s possible for home sales to rise because those who do have a steady job are able to take advantage of lower home prices, Yun said.
Amy Hoak is a MarketWatch reporter based in Chicago.

[Author]

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