The housing industry lacerates furthermore by Lenka Filipova

There are bad and not pleasant-to-hear news concerning the drop in sales of new houses. The sales have been on the decrease for three months, which resulted in the most extreme slowest pace within 13 years. The median price of a new commodity has slumped to the lowest point in three years. The reports showed that the sales decreased by 2.8 % previous month and that the median price lowered by 4.3 % from the December, that actually is only $216,000.Due to the fact that mortgage foreclosures are contributing to already over-saturated market, analysts are really skeptic about the improvements in the housing activity. In addition to this, the rate of sales is extremely slow, resulting in the increased time to exhaust the existing inventory to 9.9 months. Thus, the economists are forecasting more price drops in the following months.However, the financial markets have been announced by loan regulators Fannie Mae and Freddie Mac, who are the major financial contributors for U.S. home loans, that they will shift up the mortgages ceiling to make people more possible to pay their loans.Ian Shepherdson, who is a chief of private forecast firm High Frequency Economics, told he felt no doubt that the market housing was suffering a catastrophic collapse and that there was no sign yet that a bottom should have been reached in short time.All in all, the analysts are expecting the recession in this quarter, nevertheless the downturn is anticipated to be slow and calm. This is a consequence of the interest rate cuts by the Federal Reserve and by the financial support of $168 billion given by Congress.

by Lenka Filipova for PocketNews (http://pocketnews.tv)

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