The Housing Market
The news that the National Bureau of Economic Research had confirmed that the US
economy entered into a recession in December 2007 was amplified by the announcement that
the economy shed 533,000 jobs in November. The two news events dampened any lingering
hope that the economic downturn would be short-lived. However, the Fed dropped interest
rates such that fixed-term mortgage rates are now below 5% in many markets; the
combination of lower interest rates and a major infrastructure investment program that is
anticipated from the Obama administration offer the best hope for some turnaround in the
housing market in the next year.
Source:
Regional Economics Applications Laboratory,
Institute of Government and Public Affairs
University of Illinois
December 21, 2008
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