Economists positive about home sales

As the New Year has started predictions are made in every field of life but most importantly economists are looking into what we can expect for the year 2007 financially. Questions about the real estate market (will the market recover after all?), about interest rates on loans and consumer products and what developments we can expect in general cannot always be answered. However, there is a general prediction possible based on figures and patterns in the financial world over the past years.

Many of these questions were answered when a discussion was organized between three leading economists, just before Christmas. Questions that were discussed had to do with the financial expectations for home mortgages for 2007. With the new Congress installed and a slow time for the housing market many house buyers and sellers are wondering what the future of mortgage rates will be like. It is very likely that the current lapse in the housing market will indeed affect our economy.

In the last 3 months of 2006 there was a large drop in the prices of home sales and a further decline of sales figures is expected for the first part of this new year. Because house prices will (as a result of this) be brought down, more consumers will eventually buy and that is how the market will be built back up again. The major builders and home sellers are in a way forced to cut home prices and with lower interest rates people will be tempted to buy again.