Destin, FL (PRWEB) February 12, 2008
The U.S. foreclosure crisis is worsening and the number of foreclosures will become even higher over the next few years amidst growing economic uncertainty. Housing Predictor extends its foreclosure forecast into 2011 nearly doubling its original prediction.
The original foreclosure forecast issued by Housing Predictor, which tracks and forecasts more than 250 local housing markets in all 50 states called for more than 2.5 million foreclosures in the nation through 2009 and was then increased to more than 3-million. The research firm is extending that forecast as the credit crunch combined with rising unemployment and weakening consumer confidence hits real estate markets hard in the over-whelming majority of the country.
The foreclosure crisis has materialized into the worst financial disaster since the Great Depression, and little is being done to solve the massive problem, which is detailed in depth on Housing Predictor.
At the height of the Great Depression President Franklin D. Roosevelt created the Home Owners Corporation to provide loans for those having trouble making their mortgage. A similar program is needed to fix the crisis before it sends the U.S. economy into a depression.
The crisis started in subprime mortgages more than a year ago and has spread into new conventional adjustable rate mortgages. A Housing Predictor survey found one in six home owners fear losing their homes to foreclosure.
The Federal Reserve has been on an interest rate cutting path in an attempt to help the national economy. The Fed was formed in its present form and equipped with new laws to limit the likelihood of another Great Depression from occurring. The changes gave the Fed new powers and assisted the economy's recovery from the Great Depression. But the American entrepreneurial spirit and globalism in big business has changed the national economy. The World has changed massively since the 1930's.
The foreclosure epidemic is already making an impact in other areas of the economy. Credit card delinquencies are up. Auto payments are being made late in increasing numbers, and consumer confidence is waning.
Home prices in the over-whelming majority of local U.S. housing markets are falling. Some markets have already seen prices come down as much as 50% from their peaks. Foreclosures are at record highs. The damaging effect is leaving neighborhoods all over the country blighted.
For more information on the foreclosure forecast or to check your housing market forecast visit http://www.housingpredictor.com