"...Second, the recent decline in the volume of mortgage applications points to a decline in home sales in the near term. Given the one-month lag between existing home sales and mortgage applications, the model suggests that existing home sales will slow to a growth rate of about 2% in January and then decline by around 4% in February. New and pending home sales are predicted to decline by around 4% and 5% in January, respectively.
Taken together, the predictions from the recent decline in mortgage applications are consistent with our view that the housing market will remain weak in 2011. In particular, we expect only a moderate pickup in housing starts and home sales throughout 2011..."
at http://www.zerohedge.com/article/substantial-future-home-price-declines-predicted-goldman-sachs-and-peak-theories?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
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