Real Estate Outlook Uncertain
Despite modest gains in the real estate market, reports show mortgage rates are set to rise again. This comes with a level of trepidation as one in seven households with mortgages was either in foreclosure or delinquent on payments last fall, which is the most recent data available about the housing crisis from the Mortgage Bankers Association.
The Wall Street Journal cited the end of government-supported housing credit programs, such as the popular $8,000 first-time buyer credit, as one of the main reasons for an uncertain real estate future. WSJ also reported that rates could rise a full 1% quickly after.
However, other reports are showing very drastic predictions. A different study released by Barclays Capitol forecasts the addition of 2.3 million jobs by the end of the year that could lower the national unemployment rate to 9.1 percent, therefore leading to a decline in vacancies that have been plaguing the market.
Both sides do agree whether or not the real estate market looks uncertain or steady is largely determined on the number of untold mortgage delinquencies in the upcoming year. Lack of jobs or the unemployment rate can be used as a compass for this.
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