| Credit & Debt | Personal Finance | Economic Crisis | Housing Market | Employment Trends | Expert Insight |
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Homeowners expect more price fallsA Reuters/University of Michigan survey found that households expect house prices to fall by approximately 2.2 percent during 2009. Meanwhile, two-thirds of respondents said the value of their own home declined last year, which is twice the proportion who reported a decrease in 2007. Reports of falling house prices are undoubtedly bad news for those looking to sell in the near future, but they may also affect people who have no intention of putting their home on the market anytime soon. For one thing, options for home equity loans have become scarce as home values diminish. Many lenders see these types of loans are too risky when the market is so uncertain, because they are reliant on equity. Similarly, those who have been trying to take advantage of low mortgage rates and refinance their home loan in recent months may have faced a rude awakening. Because many homeowners owe more on their current mortgage than their house is worth, they are unable to switch to a new deal. The Obama administration is said to be considering a number of measures to help the housing market, from incentives to lenders to help prevent foreclosure to incentives for first-time buyers.
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