According to recent researches and observation, the housing market in the US has improved. Does it mean the industry has reached its lowest point and now it will grow steadily and sellers will have no problems with selling houses? Maybe these are only rosy prospects?
For preventing further increase in foreclosures, bank collapsing and decreasing of home prices, the government has interfered and supported the real estate market. But the question is about the future of the housing market when such government’s support will be removed.
Interest rates are low because they are kept artificially due to the Federal Reserve’s obligation to purchase mortgage-backed securities. As soon as it stops the program, the rates are likely to increase by 5% or more for attracting investors. At the same time, it will cut a number of potential buyers.
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