Housing Slump Won't Ease Anytime Soon, Says Study

Tight credit, interest rate worries keep homebuyers on sidelines
By Jim O'Neill,  Newser User
Posted Jun 23, 2008 7:48 AM CDT
A sale pending sign is seen in front of a home Monday, June 9, 2008 in Columbus, Ohio.    (AP Photo/Kiichiro Sato)
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(Newser) – Rising mortgage rates and a tenacious slump in sales and home values will continue to depress the worst housing market in decades, reports Reuters. Don't expect potential saviors—new home buyers—to make a dent any time soon, says a Harvard study. With mortgage rates at a 9-month high, credit tight, and foreclosures on the rise, they will likely wait until the market hits bottom, and it appears to have a ways to go. 

"The somber conclusion is that if the economy slips into recession or job losses keep racking up, household growth and homeownership demand could fall even more," said the Joint Center for Housing Studies at Harvard.