Source: Yahoo! —
Jeremy Siegel, a professor at Wharton, predicts that the housing market will see negative growth as a result of future Federal Reserve interest rate increases that will raise mortgage rates even further.
Due to the average rate for a 30-year fixed mortgage more than doubling this year, the housing industry has seen a slowdown in sales. The average 30-year mortgage rate this week was 6.81%, according to data from Freddie Mac, which was near its highest level since 2002.
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“I expect housing prices fall 10% to 15%, and the housing prices are accelerating on the downside,” Siegel recently told CNBC.
With such a drop, the median sales price of a single-family home in the US would drop from its second-quarter record high of $440,000 to just under $375,000 — ouch.
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