Foreclosures Main Cause Of Continuation Of Housing Market Slump
July 14th, 2008
It seems that the real estate woes will continue. The end is not in sight. Perhaps it will linger for another year. Foreclosures are the main cause for the continuation of housing market slump.
According to the current report released by National Association of Realtors the index of pending houses for sale dropped by 4.7% this May. It was the third lowest reading recorded. It indicates that “we are not out of the woods by any means” says the chief economist of the association. Its seasonally adjusted figures of pending fell to 4.7% from 84.7. In April it was 88.9. By pending sales is meant those units on which agreements have been reached with buyers but have not yet been closed. According to the association the price of houses across the country fell by 6.3% in May.
There are clear signs that the slump in the housing market in USA will continue all through summer and perhaps beyond that. Possibly it will drag on for another year.
As the real estate market and the general economy began to worsen the lawmakers in the Senate worked hard to give the green signal to a rescue plan by the end of the week to stop thousands of houses falling into foreclosure. But there are doubts about certain impediments that might be created by White House regarding the smooth passage of the bill becoming law. Some portions of the bill are not being liked by the Bush administration. It is particularly balked about a $3.9 billion fund that will be utilized for purchasing and fixing up of foreclosed units
Henry Paulson, speaking at a forum in Arlington, explained the limits to what the administration can do to help the foreclosure victims. He reiterated that many of the foreclosures today just cannot be avoided. “There is little public policymakers can, or should, do to compensate for untenable financial decisions.”
The Federal Reserve will announce new rules in the following week that will give protection to house buyers in the future. The target is to protect them from predatory lending.
Ben Bernanke (Federal chairperson) spoke at length on the rules for which people have been waiting for a long time. He embarked on the challenges being faced by those who handled policy matters especially in regard to a wobbly financial market. The plan faces the vote on Monday at a meeting of the Federal board.
- Civil Courts are Clogged by Staggering Number of Foreclosures
- Scam Companies Are Proliferating, Thanks to Foreclosure Crisis
- The Obama Government Aggressively Responding to the Foreclosure Crisis
- Foreclosure Measures Being Discussed by Congress and HUD Secretary
- Ben Bernanke Facing Brickbats As Well As Kudos for His Foreclosure Mitigation Plans
- House Builders and Mortgage Associations Wake Up To the Benefits of Empowering Judges to Modify Loans to Avoid Foreclosures
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