Residential Housing?

With the tax credit expiring in Spring, the Fed slowing or completely stopping the purchases of Fannie and Freddie mortgages, mortgage rates on the rise, and a still brittle jobs market--will housing continue to improve? We still have quite a bit of foreclosure inventory that has yet to hit the market.

It's hard to say yes, not because it's a loaded question but because so much fundamental data is working against a sharp rise in prices. The latest pending home sales numbers were dismal (16% drop from October to November) as the $8,000 tax credit was extended. It goes to show how our government is propping up the market.

More to come...