2007 Median Prices May Remain Flat, But Mortgage Rates May Rise

The hoped-for huge drop in home prices many buyers have been waiting for and expecting is not likely to be the reality. While prices may go up in some areas at a very modest appreciation, or just stay the same, buyer's home payments may increase with the rise in mortgage rates. So why wait? Look for your next investment property, house or condo at www.juliahuntsman.com by clicking on the Property Search. You'll be glad you did as it's updated and current throughout the day directly from the local MLS.

The Mortgage Bankers Association expects the interest rate on a 30-year fixed-rate mortgage to jump from 6.2 percent to 6.5 percent by the end of the third quarter, as investors lose hope that the Federal Reserve will slash short-term rates any time soon.

The MBA Chief Economist

expects existing-home price appreciation to slow "significantly" over the next three years, and that median prices should remain relatively flat for new and existing homes. Price gains for both types of housing are expected to be limited to about 2 percent in 2008 and 2009.

Inman News, Jan. 17,2007