2009 PREDICTIONS

Ten real estate predictions for 2009 is likely to be a year of continuing adjustment to a changing real estate marketplace. Prepare yourself and your business.
• Sellers will continue to face falling home values in the new year because they’ll be competing with banks and builders who are slashing prices to sell off the still-huge inventory of foreclosures and new homes.
• The Obama administration will act on its plan to crack down on abusive lending practices.
• Mortgage holders in danger of losing their homes will receive more assistance from a variety of programs since the Senate’s Joint Economic Committee has predicted two million foreclosures in 2009.
• Banks’ restructuring should bring increasing calm, making loan modifications and short sales easier to obtain. Eventually this will lead to a decrease in the number of bank-owned properties on the market.
• Mortgage applications will continue to receive a comprehensive review, requiring borrowers to provide extensive income and debt documentation. Those with the best credit will get the best rates.
• The foreclosure crisis has created wiser consumers, with a deeper understanding of real estate, mortgages and credit, enabling better decision-making going forward.
• Green is good with increasing numbers of buyers opting for smaller homes that are within walking distance of school and work.
• Buyers and sellers will be more and more tech savvy, relying on tools like video, webcasts, and mobile search. Consumers and practitioners will benefit from being ahead of the curve.
• Prices will be low as will interest rates, creating great buying opportunities, and likely, inspiring reluctant buyers to make their move.
• The recession will end and buyers will regain confidence in the market.

MORTGAGE RATES COULD FALL TO 4%
"Government efforts to provide easier credit to consumers and jumpstart flagging home sales could push mortgage rates "well below 4 percent," a federal regulator said Wednesday.James Lockhart, whose agency oversees government-controlled mortgage giants Fannie Mae and Freddie Mac, made the comments at a meeting of Women in Housing & Finance, an industry group. He did not say how long it would take to achieve such a drop and has declined to provide a firm target for mortgage rates.Treasury Department officials have been considering a program to lower mortgage rates, which would not apply to refinanced loans."
In my opinion, they need to make refinancing applicable to all home owners in order to stop foreclosures and shortsales!!! People are becoming jobless and unable to make their usual and customary 30 yr fixed loans as well...