Optimism rising in the housing market

Growing number of analysts beginning to hint that the country’s housing slump may be over.

Optimism is rising on housing market

LOS ANGELES – Dec. 4, 2006 – A growing number of analysts are beginning to hint that the country’s housing slump may be over, pointing to a rebound in home builder stocks and declining mortgage rates as proof.

Indeed, builder stocks rallied sharply on Nov. 30 following an analyst’s upgrade, while Freddie Mac confirms that the average interest on a 30-year fixed mortgage slipped to 6.14 percent this past week.

Office of Federal Housing Enterprise Oversight (OFHEO) Chief Economist Patrick Lawler reports, “The transition from sizzling markets to normal or weak markets has been orderly so far, and recent drops in interest rates lessen the likelihood that precipitous changes will occur.”

Still, there is no denying that the U.S. residential property sector is still soft compared with the previous three years, with several once-sizzling markets still vulnerable to continued sales and home-price declines.

Source: Los Angeles Times (12/01/06) Haddad, Annette