So what is going to happen with the housing market?
Many people want to repair their credit so that they can actually buy a house and the truth is that the housing market affects us all, whether we rent or own, the housing market affects you unless you are living under a viaduct and if that is the case then housing is even more important just not accessible.
So what is going to happen with the housing market?
Well, interest rates have increased to about 5% up from 4.61% last week.
Some analysts? suspect that the rising interest rates will spur some buying because of the fear of rates raising even more and 5% is still relatively low. House prices are also down, so the combination of low interest rates and low house prices may be a good sign.
Except that house prices are expected to decline further. Several million homes are still in the foreclosure pipeline and have yet to hit the market. If they all hit the market around the same time, supply will be up, prices must come down, that is just basic economics 101.
Estimates on potential foreclosures range from 4.5 million to 7 million in just the next 3 years.
And then again, what about the people who can afford to pay for their home, yet are upside down, meaning they owe more than it is worth, or even will be worth again for a very, very long time. How many of those people will walk? Estimates are that nearly 11 million homeowners, or 22.5% of the total, owe more on their mortgage than their houses are worth, according to data provider CoreLogic.
So what is going to happen to the housing market?
It may be wise to get out your crystal ball before you make any decisions.
