The analysts at Moody’s Investors Service are downbeat in their outlook for both the U.S. economy and the housing market. In the agency’s ResiLandscape report issued last week, they warn that there’s a stronger chance the country will slide back into a recession, and they are forecasting a “longer and deeper housing correction.”
Chen expects house prices to fall until the third quarter of next year, significantly longer than Moody’s previous projections of a first-quarter 2011 bottom in home prices. According to Chen, the change to a longer correction is primarily fueled by the slow disposition of repossessed homes. She says the flood of 4 million homes either in late-stage delinquency or foreclosure is clogging the foreclosure pipeline from the servicers to the courtrooms, creating delays.
To read this article in it's entirety: http://www.dsnews.com/articles/moodys-forecast-for-housing-and-economy-dim-2010-09-21
Article By: Carrie Bay
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