STILL DOUBLE WHAMMY FOR SELLERS
Homeowners will be ringing in the New Year with the double whammy of a sick housing market and a struggling job market still in place with few signs that things will get better in 2011.
MORTGAGE FORECLOSURES – Statistics show the number of foreclosures continuing to rise. According to the Comptroller of the Currency and the Office of Thrift Supervision, recent data suggests 17% fewer delinquent homeowners were able to get mortgage assistance in the 3rd quarter compared to the 2nd quarter. This is also 32% fewer than one year earlier.
INTEREST RATES – The recent rise in mortgage interest rates has dried up what little demand there was for existing mortgages. According to the Mortgage Bankers Association, applications for new mortgages declined for the fourth consecutive week.
JOBS – Ask anyone who is unemployed and they will tell you how difficult it is to find work. Additionally, paychecks are not getting bigger. With a looming risk of inflation, it’s likely that consumer belt-tightening will continue in the coming year.
Look for housing and jobs to remain questionable in 2011 and continue to drag the economy down.