Experts are concerned that problems with the home mortgage industry could spread to several other sectors, making it very difficult for the economy to experience any real growth. The home mortgage forecast continues to be bad, despite small glimmers of hope in some areas. Housing values are down and rates seem to be holding steady, but many are unable to get a new home mortgage at this time. Few can come to a consensus as to what needs to be done to fix the home mortgage market and the trouble seems to be getting worse instead of better.
David Kern, economic adviser to the British Chambers of Commerce, said the report “confirms the growing pressures on the international banking system could hit businesses, with dire consequences for jobs. If this happens, individuals as well as businesses would be hit, and what is now a very unpleasant slowdown could degenerate into a nasty recession,” he added.
Jaime Caruana of the IMF stated, “As economies slow, credit deterioration is widening and deepening, and as banks deleverage and rebuild capital, lending is beginning to be squeezed, restricting household spending and clouding the outlook for the real economy.”
Related reading: Home Mortgage
Comment on this article