U.S. housing prices will continue to decline at least through the end of next year and may not begin creeping upward again until 2010, executives from the biggest mortgage financiers said Monday.
Officials with government-sponsored mortgage companies Fannie Mae and Freddie Mac and CEOs from two major mortgage banks told the Mortgage Bankers Association's annual convention that the continuing spike in foreclosures and a glut of unsold homes will prevent any quick price rebound.
"It's going to be a long time before we see it bottom out and recover," said David Lowman, chief executive of JPMorgan Chase. "There's too much inventory already in the marketplace."
This shouldn't surprise anyone. However, it should surprise people that it has taken this long for the industry to begin issuing statements that are closer to reality. Inventory of existing homes is sky high, delinquencies are spiking and the credit markets are still experiencing serious problems.