| Mortgage rates have been heading lower for seven | | | | government thinks there has been a bottom in home |
| months now so when exactly will we see the bottom? | | | | prices. Home prices, on a national average, are now |
| Since October of last year we have seen a steady | | | | 31% off the highs from June of 2006. For the month |
| decline in mortgage rates. There are many factors | | | | of February, the most current data, home prices |
| that have prolonged this decline one of which is the | | | | continued to slide. Even with rates well under 5% the |
| Federal Reserve Bank. The Fed continues to dump | | | | American government is realizing that putting a bottom |
| money into the housing market by buying up MBS in | | | | in the housing market is much harder than predicted. |
| hopes to find a bottom in home prices. When trillions | | | | The only true way to get America out of this issue is |
| are dollars are being thrown into securities in the | | | | to create jobs and savings. This country is |
| mortgage industry it only makes sense that rates will | | | | consumed with debt and it is coming back to haunt |
| decline. Ben Bernanke and the Fed has stated that | | | | us. Now that the value of homes has drastically |
| they will continue to do this so will there be a bottom in | | | | declined, the level of debt is increasing in not only |
| mortgage rates anytime soon? | | | | consumers lives but in everyday corporate |
| It is highly likely that we will continue to see this | | | | purchases. If America continues to go on living this |
| downward trend. No one really knows where the | | | | way, it is going to be very difficult to see the housing |
| bottom will be but it is not going to happen until the | | | | market return to normal anytime in the near future. |