Housing Market Appears To Be Slowing

The U.S. housing market, having been haunt for the past few years, is expected to dissipate somewhat over the course of the next 12 months in conjunction with steady increases in long-term interest rates for residential home loans.

Many industry experts have predicted that interest rates for typical home loans around the country should reach the 6 percent mark by the end of 2005. If this becomes a reality, higher interest rates will put pressure on home pricing, thus keeping cost appreciation around the 4 percent mark throughout the course of next year.

To this point, historically low mortgage rates have certainly augmented rallying of our housing market since 2002.

Larger demand for new and previously owned homes has catalyzed increases in home prices by more than one half over the past five years or so. Some economists believe that price gains seen in recent years have been a large contributing factor to the adjustable-rate mortgage popularity trend.

Article by Nolan Voight for CMR original Syndicated News.

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