Categorized | Residential

Housing Market Struggles Expected to Continue Despite Government Help

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Although the United States government has pledged to do all that it can to help the nation’s real estate market recover, many experts and analysts believe that the current intervention plans will have little positive impact on the sector.

Most recently, the Federal Reserve made it clear that they would keep mortgage loan interest rates at their record low levels in hopes that it will be a motivating factor for customers to buy homes, and thus stimulate the market. Unfortunately, even with low mortgage rates, potential buyers have not yet shown any desire to buy a home in the current market.

While low mortgage loan rates are certainly appealing to most potential homeowners, they simply do not outweigh such factors as a very unsecure job market, and a glut of foreclosures that have utterly decimated housing prices.

The current action by the Federal Reserve to keep mortgage rates low is not the first time that the United States government has tried to assist a real estate recovery. In fact, the current administration has experimented with a variety of different measures to improve the situation, though none of them have had last effects. Tax credits, mortgage modification programs, and government-backed loans have all been used to either spur interest among new homebuyers, or to prevent the ever-growing number of foreclosures. While each new measure has provided a slight bump in the market, the impact was only temporary at best.

Housing analysts believe that true recovery will come from a vastly improved job market, where unemployment no longer becomes a constant fear among most citizens of the United States.

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About Josh Johnson

Josh is the main writer for the Residential category. He also helps out on other categories when needed, mainly the International section.

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