Can any one explain for me about real estate and mortgage systuation in USA currently please?10 points for best answer :) Thanks every 1
The USA is a big country and made up of a variety of different real estate markets. Some are booming, some are depressed, many are normal. The market is so wise and so diverse that it would be absurd to generalize about it like it was homogeneous. Interest rates are near historic lows.
Currently the real estate market is in bad shape. I believe there is a 13% surplus in homes for sell. That means there are more homes available than demanded. The sub prime mortgage lenders are in trouble or going out of business (bear stearns had a huge amount of assets in sub prime mrtg) because of a sub prime collapse that happened over the last year or so. Lenders were lending adjustable rate mortgages to people who would not be able to afford their payments once the interest rate on their mortgage adjusted up after the predetermined amount of time. These people lost their houses due to foreclosure. The banks are losing money because they aren't making their interest and they can't sell properties. Good time to buy, bad time to sell.
