What's the Future For Housing?

Head Ted Jones, chief economist for Stewart Title from here in Texas, spoke on the 2009 Economic Forecast of Housing. Doesn’t look too good in lots of ways.

Remember all of our foreclosures with sub-prime mortages (mortgages made to people that did not qualify for regular mortgages, with 100% financing and with rolling in closing costs above the list price)? Well, we are not through with foreclosures. We will have a continuance of foreclosures from Adjustable Rate Loans that will be begin to adjust upward in the next 3 years! These are "exotic loans" and were very prevalent in Florida, Nevada and California where the entry interest rates were below 3% but then they start adjusting after the first year. It was explained that these "exotic loans" have become "toxic loans!"

This is a great 60 Minute report on the future foreclosures as well that I found: http://www.RenegadeMillionaireBlog.com

Dr. Jones also said he felt interest rates would drop to the mid 4 percent and would stay that way for most of 2009. So what does all of this mean to you? Lower interest rates so you can qualify for a home and lower prices with foreclosures still coming on the market. Call us to see how we can help or search for you new home on this page!