No Rise in Home Prices Until 2020: Bankers Home prices are unlikely to recover before 2020 and mortgage defaults will persist for years, says a survey of bank risk managers out Friday. The survey conducted by the Professional Risk Managers International Association for FICO, found that 49 percent of respondents do not expect housing prices to rise back to 2007 levels for another nine years. Only 21 percent of respondents said they would. The findings, which authors called a decidedly pessimistic outlook, are a sharp reversal from cautious optimism the survey respondents expressed late last year and in early 2011. In addition, 73 percent of surveyed bankers say they expect mortgage defaults to remain elevated for at least another five years. And 46 percent believe mortgage delinquencies will increase over the next six months. Only 15 percent of respondents expect mortgage delinquencies to decline during that period. While the housing sector will almost certainly gain strength during the next nine years, many bankers clearly believe prices will remain depressed for half a generation, said Andrew Jennings, chief analytics officer at FICO. Bankers concerns spread beyond the housing market. A large number of respondents says they also expect to see an uptick in delinquencies on auto loans, credit cards and student loans. Small businesses are expected to continue face a challenging credit environment. More than one-third of respondents forecast an increase in delinquencies on small business loans. Bankers also appear to be pessimistic about recovery in consumer spending, with 64 percent of respondents expecting credit card usage to remain below pre-recession levels for at least five more years. Half of the respondents expect credit card balances to increase over the next six months, due to higher spending by some households and smaller monthly payments by others. http://www.cnbc.com/id/44735283 O'riffic!! Obama should run on his economic acumen. The man is a genius. How many months are we into the "Obama Recovery"(tm)? _
Awesome. I bought my house in 08, now I"m stuck here because it's worth less now than it was then (despite about 15 grand in upgrades, renovations, etc). So I would like to send a big F.U. out to Obama, Bawney (*)(*)(*), Chris Dodd, Bill Clinton, Franklin Raines, and every other idiot democrat out there for (*)(*)(*)(*)ing over this country.
