Ares
12th May 2010, 12:09 PM
While the $8,000 government tax credit expired on April 30, early signs are already revealing a red flag in the residential housing sector.
With this in mind, I predict housing prices and mortgage applications will resume a more precipitous decline over the next several months, while foreclosures will substantially rise. By mid to late summer, we will be hearing about a "Double-Dip" drop in housing.
As this scenario unfolds, I expect the Federal Reserve to once again step in, and resume printing money to purchase mortgage-backed securities. There may even be another multi-billion dollar housing bill or government-funded tax credit to stop the bleeding.
Such actions, if enacted, will exacerbate the record budget deficit and hurt the value of the Dollar, curtailing its fear-driven rise.
With a 17.1% effective unemployment rate, a cessation of stimulus support, and a huge supply of foreclosures set to hit the market, conditions are ripe for another fall in residential real estate.
The conditions are ripe for another major downturn in residential real estate.
http://theindependentforum.blogspot.com/2010/05/trend-alert-another-downturn-to-hit-us.html
With this in mind, I predict housing prices and mortgage applications will resume a more precipitous decline over the next several months, while foreclosures will substantially rise. By mid to late summer, we will be hearing about a "Double-Dip" drop in housing.
As this scenario unfolds, I expect the Federal Reserve to once again step in, and resume printing money to purchase mortgage-backed securities. There may even be another multi-billion dollar housing bill or government-funded tax credit to stop the bleeding.
Such actions, if enacted, will exacerbate the record budget deficit and hurt the value of the Dollar, curtailing its fear-driven rise.
With a 17.1% effective unemployment rate, a cessation of stimulus support, and a huge supply of foreclosures set to hit the market, conditions are ripe for another fall in residential real estate.
The conditions are ripe for another major downturn in residential real estate.
http://theindependentforum.blogspot.com/2010/05/trend-alert-another-downturn-to-hit-us.html