Fannie Mae: Home Prices To Decline Into Next Year

This article is inline with what I have been suspecting based on news and data on the economy.   Housing prices will continue to decline.  The article doesn't go into much detail as to why, but the next round of mortgage resets are on their way.  We continue to finance people with next to zero down through government programs that are not working.  With so little down and the amount of jobs being lost mortgagor's find it very easy to walk away from the deal.  With Fannie Mae backstopping the banks to make endless mortgages again, I think we will see this story for a while further.  [ read more... ]