Bottom of the Market?

Could We Be at the Bottom of the Market?

Home prices have been down quite a bit for the last few years, foreclosures have been up and everyone has been wondering if the end is in sight.

Foreclosure Crisis Is Coming to an End

That's not to say there won't be any more foreclosures. There will be another spike in foreclosures as houses come through from the robosigning scandal. Banks have settled with the state governments so houses should start moving through the foreclosure pipeline now. Investors are snapping up foreclosures as rental properties so prices on the foreclosures are coming up and not dragging down the market price of other homes.

Rental Rates are High

With so many people renting, prices have gotten higher. It's once again cheaper to own than rent.

Interest Rates Are Expected to Rise

Doug Ledba, CEO of Lending Tree, says rates will move higher. The Mortgage Bankers Association is predicting that rates will move to 4.5% by the end of the year.

While it won't happen overnight, we could be coming out of the housing mess. People can see the light at the end of the tunnel, and for once it doesn't feel like it's an oncoming train. The original article can be found here.