Read the mortgage news and much of what you see is doom and gloom about the industry, and dire descriptions about worst case housing scenarios. However, there are two sides of a coin, so it’s only fair to also point out potential heads up news about mortgage and housing trends.

Mortgage news estimating negative aspects to the housing crisis:

1. It has been estimated that there may be up to 8 million foreclosures by the end of 2012.

2. Up to 19 million homeowners might owe more than their house is worth by 2010.

3. The inventory of homes for sale could double the current volume by the end of 2012.

4. The median home price in some areas is estimated to drop an additional 20% or more.

5. New home starts could drop by 67% compared to the peak of the construction market. More details please visit:-

Mortgage news of potential positive elements to the housing crisis:

1. All of the mortgage loans now being funded should have a low risk of default because mortgage lenders have gone back to using conservative underwriting guidelines.

2. Mortgage interest rates should continue to remain low, which would allow qualified borrowers to buy a home or refinance with a more affordable house payment.

3. Home prices are coming back down to reasonable levels that provide opportunities for first time home buyers and other potential buyers to participate in the housing market again.

4. Government purchase of mortgage backed securities should have a stabilizing effect on the housing market and provide more funds for mortgage refinancing and home purchases.

5. As more people buy homes because of reduced home prices and lower mortgage rates, there is a greater chance of home values stabilizing and a housing recovery sooner rather than later.

It’s been said that predictions are difficult, especially if they are about the future. Pundits and prognosticators offer their opinions, peddling both sides of the issue. Some back their claim with complicated spreadsheets, and others with simple logic, such as, if mortgage rates are low and home prices are down 40%, then people will buy homes. It has also been suggested that new immigration and a baby boom are needed to return to the glory days. Whether your glass is half empty or half full may depend on how you process the news, or how you are affected by reality.

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