Industry News

Housing market risks unraveled

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While the nation is consumed with talk of a potential housing-price bubble, an industry trade group today said that when sizing up the possibility of a real estate market downturn, act with caution not panic. "There are risks, but they are far less dramatic than the hyperbole of recent months," said Doug Duncan, chief economist for the Mortgage Bankers Association. Duncan co-authored a report, "Housing and Mortgage Markets: An Analysis," released today. Housing price growth will slow, Duncan said, and he expects a flattening in the decline of home-loan delinquencies with "possibly even a slight upturn." All of this will modestly impact the U.S. economy, but it's important to note that the housing and financial markets are fundamentally sound, he said. The booming housing market is increasingly viewed as a pending problem, putting debates over whether a housing bubble exists back in the spotlight. People everywhere are talking about the possibility of price crashes and wondering what w...