More Consumers Could Seek Home Loans in 2011
01/13/2011
By Credit.com Staff
Economists, speaking at a panel during the National Association of Home Builders annual meeting, said that while the current housing market remains weak and home prices continue to fall, home sales will likely rebound in the near future, according to a report from the Wall Street Journal. Freddie Mac chief economist Frank Nothaft said home values are expected to finally hit bottom in the first half of 2011, and mortgage rates will likely creep up near 5.25 percent by the end of the year.
However, PMI Group chief economist David Berson believes better gains may not be seen until 2013, the report said. Even still home prices will likely end the year without experiencing declines.
Low mortgage rates are expected to continue to drive sales in the spring, when consumers often begin shopping for a home, the report said.
Home prices have remained depressed as a result of the foreclosure crisis, which has caused entire neighborhoods and cities to lose a significant portion of their property values in the last year.
