ederal Reserve Board Bernanke made his comments in
Chairman Ben Bernanke has semi-annual testimony before a
confirmed the Housing congressional committee, which is
Predictor forecast that more than looking into ways to assist the
2 million homes will be nation’s lending economy to help
foreclosed as a result of the sub resolve the sub prime crisis. The
prime lending crisis. Chief Fed Chairman deplored
“abusive lending practices and
In a hearing before the outright fraud” in the wake of
Congressional House Financial near record foreclosures caused
Services Committee in Washington by the sub prime crisis.
D.C., Bernanke essentially
confirmed the Housing Predictor The Housing Predictor forecast
forecast issued in early June, was based on an analysis of the
saying more foreclosures will nation’s largest metropolitan
occur as a result of fall out real estate markets conducted
from the sub prime debacle. over a one month period by a team
of researchers and journalists.
However, he differed with one Housing Predictor forecasts more
congressional committee member’s than 250 local housing markets in
estimates that 1.5 million all 50 U.S. states.
foreclosures would occur alone in
2007. Bernanke conceded that the The web site is regularly
rate of foreclosures caused by consulted by many of the nation’s
the nation’s sub prime crisis foremost Wall Street investment
would worsen in 2008 and 2009 houses, mortgage and real estate
without citing any figures, but companies, and consumers for its
agreed the figure would go into forecasts, which are updated
the millions. regularly as local market
conditions demand.Foreclosures
are at near record levels in second home markets and higher
Michigan, Minnesota, Ohio and priced areas are immune from the
Colorado. Other states that are fall out of foreclosures.
experiencing the highest number
of foreclosures include Eighteen states real estate
California, Alabama, Indiana and markets are appreciating and an
Mississippi. additional 10 states housing
markets are showing signs of
However, the fall out from the stabilizing. Many of the
sub prime meltdown is not foreclosures are occurring as a
extending into all of the result of increases in adjustable
nation’s housing markets on a rate mortgages, and unethical
widespread scale. Foreclosures lending practices on the part of
are occurring more commonly in some mortgage borrowers and
lower middle class and poorer lenders.
neighborhoods. Many housing
markets, including vacation and
About the Author:
Mike Colpitts is the Editor of Housing Predictor. To read the entire foreclosure forecast, check local market forecasts and search real estate listings visit http://www.housingpredictor.com
Read more articles by:
Mike Colpitts
Article Source: www.iSnare.com 
