The Housing Bubble Could Blow Very Soon
Posted on June 13, 2006
Filed Under Mortgage Companies, Mortgage Rates, Mortgage Updates
In a recent report Freddie Mac has been trying to soothe everyone and using words such as “orderly and moderate cooling”. Last I checked we were not talking about an apple pie. Carefully worded statements and a soothing tone will not calm down consumers and business men and women who stand to lose a lot of money if things keep going down hill in the real estate game.
Freddie Mac stated that it expects that gradually rising interest rates will “slacken” demand further and that home sales and construction will decline about 7 percent in 2006. This would, the report said, still result in the third best year ever for those figures, outstripped only by 2005 and 2004. Still, housing starts are expected to decline 16 percent on an annualized basis from 2.13 million units in the first quarter to 1.79 million in the forth quarter, averaging 1.93 million for the year. The May report had projected 1.93 million housing starts for 2007 but that projection quietly became 1.78 million in the June summary tables.
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