The question of weather the housing market has hit bottom is now being answered by Moody’s Economy.com and the answer is yes and no. In classical economist form, Moody’s gives us a run down on the ups and downs of the national housing market, which is summarized below.
Home sales have hit bottom and are increasing.
Single family and Multi-family housing construction is at the bottom and expected to begin increasing slowly in 2010.
Housing prices are expected to continue to decline from their 2006 peak an average of about 8% though 2010.
Foreclosures are expected in continue to increase due to slow job growth, decreasing loan modifications and the large number of homeowners behind 90 days or more on their mortgages. (More than 15000 in the last 2 quarters of 2009)
Available mortgage credit is not expected to change in 2010, although the FHA will remain aggressive in credit extension, neither the FHA nor the private market is expected to increase mortgage credit.
The Federal Funds rate is expected to remain low, while mortgage rates are expected to increase slightly from 5% to 5.5% by the end of this year.
Stay tuned for Moody’s analysis of foreclosures.
