Mortgage finance Giants Fannie Mae and Freddie Mac recently released reports and perspectives about the State of the u.s. real estate market. Unfortunately, their predictions are not looking exciting.
Report of Freddie Mac, economic and Housing Market Outlook for October showed that home-ownership rates have fallen last year, sliding down 1.5 percent to 65.9% from 66.9% during the second quarter of 2010. Among those in the ' under age 25, home-ownership is down 4.4 percent, while the rate for those between 25 and 29 is down 7.0%.
And, consequently, the manufacturers focus on condominiums to attract those who do not buy more homes.
"New construction starts slowly is collecting and multifamily loan seems to be increasing even with origination volume this year stronger than 2010," said Frank Nothaft, Freddie Mac vice President and Chief Economist. "In part, the increase in Originations is related to low mortgage rates, improvement of apartment-sector economy and the return of traditional lenders which had decreased activity during the recession."
Regarding Fannie Mae, they require constant economic trouble, with slower growth rates will also purchase applications and mutual home. Fannie put the chances of a repeat recession by the end of 2012 to close to fifty percent.
"In this type of environment, the housing market remains very slow and consumer willingness to dig into their savings products of big ticket is very low," said Fannie Mae Chief Economist Doug Duncan. "There was a bit cyclic seasonal pick-up in housing activity recently as the spring and summer sales are generally stronger than autumn and winter, but the point of main indicators of housing sales bouncing along the bottom, at least until the end of 2012."
Duncan also pointed out that as foreclosed properties continue to plague the market, prices remain weak. And if this is true, he says, "Home prices are a key factor for any positive movement of the real estate market", so it might be a long recovery indeed.
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