From December 2009 to February 2010 housing prices have dropped 0.6%, according to the Federal Housing Finance Agency. FHFA estimates the drop in housing prices is due to hesitation and a slowing in home sales brought on by a fear of a “double-dip” in housing prices.
With mortgage originations and home sales overall down for February, there is concern that the end of the federal homebuyer tax credit could result in a further depression in home value and sales, which already at a high over the last 4 month period. Additionally, experts expect an increase in foreclosures due to high unemployment, resulting in as many as 5-6 million more homes on the market.
According to FHFA, the biggest drops in home values where in the New England area and South East.
g in a 30-year fixed loan.
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