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IHS Global Insight Chief Economist Nariman Behravesh argues housing prices will continue to fall this year.
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-- thought that the housing market -- -- -- -- ten US home prices took another tumble for their fourth straight month.
This shows us through the S&P Case Shiller Index -- got about twenty cities that they look at they reported up 4% fall in December property values.
And -- -- -- chief economist at high Ajax global insight is expecting another five to 10% decline.
Over the next year and he joins us now the -- and it does this happen no matter what the Fed the Fed has tried everything they've been -- money like crazy buying it.
The mortgage backed securities to keep interest rates down it hasn't done anything in order revive the housing market is that gonna continue.
I think so the Fed's done everything in its power the problem as that nobody's really fix this.
Foreclosure mess you've got.
About 12%.
Of all homeowners with a mortgage.
Either delinquent or foreclosure.
22%.
Of homeowners with a mortgage.
Basically underwater the value of mortgage more than the back of the house.
This is pretty huge continued downward pressure on home prices that's why we believe we're looking another five to 10% drop in home prices over -- -- here so yet another year OK now what does this mean for mortgage rates do you think that they continue to stay at pretty historic lows go further lower or start to tick up.
I'm not sure how much further lower they're gonna go but they are at historic lows are close.
As you're saying I don't see them going up I don't see the -- letting them go up my guess is the way to say it.
The Fed's gonna work very hard to keep them low in an attempt to revive the market and try to turn this -- picture around.
Well let me see if I didn't look for some light at the end of the tunnel -- -- sales.
In Florida as a percent of overall shares are down significantly the last time I looked.
So that that seems to say that there is some clearing of these for -- homes correct.
There's no question about -- and we're beginning to see housing activity picking up sales that existing and new homes picking up a little bit.
Housing starts starting to pick up a little bit so there are signs of life in housing but it's very gradual.
In a week we gotta bring this in because of course -- the Michigan primary tonight.
Rick Santorum is taking some heat for saying that 2000 eight's record high gasoline prices.
Are what caused the financial crisis you is an economist at -- stand on that is that about some grain of truth or is it outrageous.
It's a tiny grain of truth in the sense that.
Rising gasoline prices were contributing factor the big problem of course was the credit crisis.
And the financial crisis that's what tip us into this you -- very very deep recession.
Prior to that the economy was weak but it wasn't in recession -- can't blame the recession on gasoline prices.
-- Harriman -- -- shape economist with high HS global insight never great to see you thank you so much.
