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Upbeat forecast for home prices

By Judy Martel · Bankrate.com
Wednesday, February 8, 2012
Posted: 5 pm ET

Consumer confidence in the economy is rising slightly and so are predictions about home prices. Mortgage company Fannie Mae reports that its January survey showed 30 percent of respondents believe the economy is on the right track, up from 22 percent in December. Respondents also predicted home prices will increase by 1 percent over the next year. In December, 0.8 percent believed that.

The numbers may be small, but at least they're headed in the right direction. Doug Duncan, chief economist at Fannie Mae, told The Wall Street Journal that the strengthening employment outlook is responsible for the uptick in consumer confidence, which will be reflected in increased spending.

But even if home prices have hit bottom, that's only part of the buying and selling equation. Last week, Bankrate reporter Polyana da Costa wrote that the improved employment picture will likely result in higher mortgage rates. And there are still a slew of distressed properties that have to come off the market before prices stabilize.

Nevertheless, any positive news is welcome in the current housing market.

Are you feeling slightly more optimistic about the employment outlook and how that translates into home prices?

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4 Comments
Gayle Montisano
February 10, 2012 at 5:20 pm

Julie, I recommend you contact your bank. That would be your first step. Depending on the lender of the loan, they maybe able to help you depending on your financial hardship. I short sold two of my homes in the past and was successful. That was a few years ago when it was very difficult to do. Now they have made things a little easier. Hope this helps! Good luck!

Julie Robinson
February 10, 2012 at 4:09 pm

Hello,
I am hoping someone can help shed some light on our current mortgage. We currently own our home in the Lake Stevens area of Seattle, WA. We are upside down on it, and have no were to turn for help. We have never been late on a payment but has been a hardship making that payment. We would like to have a chance to refi but don't know were to turn. Our bank is not involved in this current agreement. What are some ideas that we can explore to get our mortgage reduced?

Julie Robinson
February 10, 2012 at 4:01 pm

Hello,
I am hoping someone can help shed some light on our current mortgage. We currently own our home in the Lake Stevens area of Seattle, WA. We are upside down on it, and have no were to turn for help. We have never been late on a payment but has been a hardship making that payment. We would like to have a chance to refi but don't know were to turn. Our bank is not involved in this current agreement. What are some ideas that we can explore to get our mortgage reduced?
Thank you, Julie Robinson