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Housing Market: Morgan Stanley with Bold Predictions

Morgan Stanley, Housing Market, Fannie Mae, Freddie Mac, Real Estate Industry, Real Estate News, Real Estate

Morgan Stanley is Optimistic on the Housing Industry's Future Direction

According to Morgan Stanley, we are out of the woods in terms of the housing crash and are well on our way towards a Nationwide housing recovery. Despite the fact that decisions on qualified mortgages and mortgage servicing regulation are forthcoming, the Investment House still is confident that the housing industry will come out on top. They continued to show this optimism in their latest Housing Markets Insight Report; "We expect to see 2012 end with an increase of 7-9% for the year in aggregate home prices after considering seasonality effects for the remainder of the year, with the possibility of a 10-12% increase on the bullish side and a 4-6% increase as the bear case. We view the bear case outcome to be relatively less likely."

Fannie Mae and Freddie Mac have been slowly but surely reducing their market share while an even tighter mortgage credit industry is keeping the demand very high. Morgan Stanley goes on to point out that, "Recent actions by the Federal Reserve, the commitment to keep interest rates lower for longer as well as the launch of an open-ended QE3, convince us that this low mortgage rate environment and the demand response for housing are likely to prevail for an extended period well into the future." Indeed it seems as though this next year is going to be an incredibly favorable one for the Real Estate market. After all of the progress made throughout the past year in this field, it is ever so encouraging to realize that experts are not sensing any sort of setback or second plunge into a housing crash; instead, the future is looking even brighter.

More Information: Housing Wire

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