On the anniversary of one of the nation’s most horrific tragedies, September 11 2001, the National Association of Realtors (NAR) is forecasting a longer than expected recovery for the housing market. The NRA changed it recovery forecast from 2007 to some time in year 2008.
The sub-prime mortgage fallout is said to be the cause of the extended market downturn. The increase in the foreclosure rate has prompted many mortgage companies to change their standards of lending. Most of the standards make it harder for potential home owners to get a loan.
It is expected that the decrease in construction of new houses in 2008 will help home sales and the overall real estate market. It is also expected that the mortgage market will calm down by offering people FHA financing instead of sub-prime mortgages.
It is expected the Feds will cut interest rates two more times by 2008. 30-year fixed rate mortgages are expected to average 6.4% for 2007. The average interest rate is expected to rise to approximately 6.5% in 2008.
You can be sure when the Feds meet next week they will be talking about the job market and unemployment numbers. Many states are experiencing an increase in unemployment over the last couple of months. In Idaho the unemployment increased from 2.3% to 2.4% in the last month. The job market is directly related to how many people buy houses.
With this news if you are trying to sell your house now you may be waiting awhile. If you are in a situation where you need to sell your house fast then consider selling your house to a local home buyer. They offer free, confidential, no-obligation offers for your house. You have nothing to loose and you just might be surprised by the offer you get.