A recent article over at CNNmoney.com cited recently released data on the continuing drop of home prices in most markets in the US. If you are considering a refinance to a fixed rate or just a better rate now is the time to contact us in the sidebar to look into a refinance while you still have equity in your home. If you are considering a government-backed mortgage to purchase a home some time soon the price drops work in your favor so you can contact us about government-backed purchase loans as well.
Here are some excerpts from the article:
If you thought home prices were bottoming out, you may be wrong. They’re expected to head a lot lower.
Home values are predicted to drop in 342 out of 381 markets during the next year, according to a new forecast of real estate prices.
Overall, the national median home price is predicted to drop 11.3% by June 30, 2010, according to Fiserv, a financial information and analysis firm. For the following year, the firm anticipates some stabilization with prices rising 3.6%.
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Hunter also sees a new wave of foreclosure problems coming from higher priced loans and prime mortgages. He expects a high failure rate for option ARM loans that were issued to prime customers so they could buy homes in bubble markets, such as California and Florida. In those areas, prices for even modest homes had skyrocketed.