Once the price is back at a level that is affordable, new buyer will start to come back into the market, and incentives like the mortgage stimulus that gives $8,000 to new buyer will also speed up the process too.
The mortgage industry crisis has not bottomed yet but is has almost ran it’s course for the past 3 yrs now, and many true experts believe that there will be an end soon. 2010 is probably the most commonly predicted turn around time for the industry and the economy. The stimulus plan will be one of the biggest contributor in helping to end this recession. This will encourage more prospective buyers to take that leap back into buying once again, which will increase consumer confidence, and help to foster the growth of the mortgage movement get us back into the right direction.
Has Our Economy Bottomed
Some economic experts seem to think that our mortgage problems has bottomed out while many other disagree, and others that disagree and don’t think we have seen a bottom yet. The ironic thing about seeing a bottom in the economy is that when the bottom has occurred, no one really knows until the numbers have started to turn around. So until then it’s just speculation.
I personally believe that the housing market has not seen it’s lowest point yet. However, when the stimulus is completed then we will gradually start to see a bottom in the market and a gradual turn around in our economy for the good. We need to remember that almost every one of our economic down turns has started and ended with the mortgage industry. The problem started out with the slack lending policies, speculation, and the belief that the mortgage industry could not stop appreciating which created an artificial bubble in the economy. The “artificial bubble” created could not sustain it’s self, and so at it’s highest point it has to burst, in order to correct itself which creates a down turn in the market which leads us back to an equilibrium housing price. Once the price is back at a level that is affordable, new buyer will start to come back into the market, and incentives like the mortgage stimulus that gives $8,000 to new buyer will also speed up the process too.
