Newswise — “While Fed action certainly helps, it really isn't the most important factor right now. Indeed, rates on mortgages have been setting record lows – records for the past 50 years anyway – for at least a year now. More important is the fact that the economy continues to recover sluggishly and many homeowners are no longer willing to wait for the market to come back before selling the house they are in. While many remain underwater, others are gradually working their way back into the black. Even more important to the housing market is that inventories of unsold homes are now back to more-or-less normal levels in terms of months of supply.
“All of this means that the housing market has probably reached its bottom and will be unlikely to fall further in the near future, barring economic catastrophes like a European meltdown. Don't look for a sharp recovery – nothing suggests we are likely to see that – but slow improvements should continue as we gradually work our way out of the recession.”--Steven C. Kyle, an expert in macroeconomic policy and an associate professor of management at Cornell’s Dyson School of Applied Economics and Management
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