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[nimblebear]

How does this guy know this ? The more these guys spout, the more it becomes a self fulling prophecy. Home buyers see the continuous stream of negative news, and decide to wait for prices to fall more. Geesh. Sept. 27 (Bloomberg) -- Fannie Mae Chief Executive Officer Daniel Mudd said the housing slump will last beyond next year, dragging down home prices and increasing credit losses. ``We don't think we hit a bottom until the end of '08 and then we have some period of time to work our way back up again,'' Mudd said today in an interview in Washington. The outlook from Fannie Mae, the largest source of money for U.S. home loans, is more bearish than that of the National Association of Realtors, which this month predicted new home sales will stop falling in the first quarter of 2008. Pessimism about the housing market is growing as prices fall and demand declines. Purchases of new homes in the U.S. dropped more than forecast in August and prices plunged by the most in almost four decades, the Commerce Department said today in Washington. U.S. home prices will fall 2 percent to 4 percent this year, and ``more next year,'' Mudd said.

Edited by nimblebear, 28 September 2007 - 08:25 AM.