Industry News
Mortgage Industry News
Home Price Forecasts
10/27/2009
There is still a fair amount of variance in projecting home prices over the next few years. Goldman stated that "the risk of renewed home price declines remains significant"; Merrill said "we should expect subdued home price appreciation over the next few years". After it was mentioned last week that China may begin withdrawing stimulus money, India's central bank started extracting stimulus funds by ordering lenders to increase reserves. Right now, the futures market is pricing in an 88% chance that the Fed keeps rates somewhere between 0% and .25% through January 27th, 2010. Currently, the Ten Year yield is at 3.55% (3.49% yesterday) and the 2-10 yield spread is at 254bps, steepening 6bps since yesterday morning.
