It's no longer borrowers with risky credit histories that are taking the punches. The jump in the 30-year fixed-rate mortgage by more than half a percentage point to 6.74 percent in the past five weeks — the biggest rate spike since 2004 — is even putting a crimp on borrowers with the best credit.I have many friends who think this can't possibly happen in NY. I have consistently told them that your house is only worth what someone is willing to pay for it. If people are suffering economically, and they are, then prices will fall everywhere.
What's more, the national median home price is set for its first annual decline since the Great Depression, and the supply of unsold homes is at a record 4.2 million, according to the National Association of Realtors.
Another market expert opined that the situation is not just a housing recession anymore, it looks more and more like an economic recession.I have been predicting an economic recession since I started this site. A recession is the Republican's worst nightmare and it seems it may just come true.