The housing crash continues
Bailout News, Politics, California Housing Crash, Florida Housing Crash, The Economy, Real Estate September 23rd, 2008
The horrible housing news keep coming. According to MSNBC:
Home prices tumble 5.3 percent
WASHINGTON - Nationwide home prices in July fell a record 5.3 percent compared with a year ago, a government agency said Tuesday, and have now receded to October 2005 levels.
Prices were down 0.6 percent from June on a seasonally adjusted basis, according to the Federal Housing Finance Agency.
But rates are creeping back up.
The national average rate on a 30-year, fixed rate mortgage rose to 6.26 percent on Monday up from 6.11 percent on Friday as details of the government’s rescue plan remained in flux, according to financial publisher HSH Associates. The rate had fallen as low as 5.87 percent last Tuesday.
“The crash of other financial assets has made folks rather uncomfortable,” said Keith Gumbinger, a senior vice president with HSH Associates. “It’s not about keeping Fannie and Freddie afloat any more.”
Higher interest rates and falling home prices are also hurting the building industry.
