Homes sales up but the future is questionable..

Home sales have risen however what will the future hold?

The Feds have said that they will stop buying mortgage backed securities this March which means a probable increase in mortgage rates. Couple that with the expiration of the first-time homebuyers credit and the buying power of the homeowner drops substantially.

If the government wants to continue a forward motion of home sales (and they should to keep this economy from totally tanking) then they will need to step in and find a way to keep our mortgage rates low and maybe even discuss extending the credit again.

We can’t continue to rely on government programs to bail us out though and eventually we’ll hit bottom, stay stagnant for a while, then start back on the road to recovery.

Chances are though with a HUGE number of 5 year ARM resets coming up this spring we will probably see another large wave of foreclosures throughout the summer and into the fall.

Short sales & foreclosures should be a mainstay in todays local Arizona real estate market throughout 2010 and into 2011.

Related posts:

1. Happy New Year!!
2. Government charged 22 billion for tax credits
3. Rising Interest Rates Affect More Than Buyers
4. Guarantees in the economy??
5. 70% Of Phoenix Homeowners Have Underwater Mortgages