Wednesday, November 17 2010
Although the recent trend of rising long-term borrowing rates may mean higher mortgage rates for consumers in the coming months, the greatest obstacles to housing market recovery are job creation and availability of credit, according to a NATIONAL ASSOCIATION OF REALTORS® analysis.
Jobs needed to fuel housing recovery
To qualify for a loan, most buyers also must be gainfully employed. As Congress reconvenes this week and considers an extension of the Bush tax cuts, its decision could influence job creation.
Mortgage rates will rise to 5.4% by the end of 2011 from current 4.2% average rate provided the inflation rate stays manageable at near 2%.
Total home sales, both existing and new combined, will rise to 5.5 million in 2011 from 5.1 million in 2010.
Read more: http://www.houselogic.com/news/articles/housing-market-recovery-depends-jobs-access-credit/#ixzz15ZEqIy9o