Вы просматриваете: Главная > Room > Will real estate thrive without government help

Will real estate thrive without government help

Will Real Estate Thrive Without Government Help?

Real estate appears to be making a comeback showing a modest improvement in homes sales in some areas of the country. Is the housing slump over and is the real estate market now recovering? Perhaps, but these gains could mostly be a result of extensive Government support for home sales, refinancing, and loan modifications.

Government financial subsidies have been supporting the real estate market and helping to prevent an escalation of foreclosures, bank failures, and home price declines. However, the direction of the real estate market is uncertain after these market supports are removed.

Mortgage rates have been kept artificially low by a commitment from the Federal Reserve to buy mortgage-backed securities. Once the Fed ends this purchase program, mortgage rates are expected to rise .5% or more in order to attract mortgage investors, and higher mortgage rates can affect real estate sales and mortgage refinancing.

Subsidized mortgage modifications appear to be keeping thousands of real estate foreclosures off the market, however, a substantial number of these modified loans are re-defaulting, which only prolongs the foreclosure process. When modification programs end, banks could have more REO inventory putting pressure on home prices.

Another subsidy issue is the bail out money being funneled to Fannie Mae and Freddie Mac to compensate for huge mortgage default losses. Now, there is also a good chance that FHA will need billions in bail out funds.

Real estate is an important sector of our economy, and financial subsidies are buying time in the hope that investor and consumer confidence will soon recover and grow, but a big question remains about how the real estate market will stand on its own.

  • Добавить ВКонтакте заметку об этой странице
  • Мой Мир
  • Facebook
  • Twitter
  • LiveJournal
  • MySpace
  • FriendFeed
  • В закладки Google
  • Google Buzz
  • Яндекс.Закладки
  • LinkedIn
  • Reddit
  • StumbleUpon
  • Technorati
  • del.icio.us
  • Digg
  • БобрДобр
  • MisterWong.RU
  • Memori.ru
  • МоёМесто.ru
  • Сто закладок

Метки: , , , ,

Оставить комментарий