Speaking to a group of mortgage bankers in Chicago on Tuesday, Moody’s Analytics chief economist Mark Zandi said that tweaks, not a complete overhaul, could be enough to stabilize house prices and help the mortgage financing industry work through the glut of foreclosures, Dow Jones Newswires reported.
Home price drops may persist as the share of distressed sales hovers at one-third or more of transactions, but an equilibrium that signals stability is in sight, said Zandi. “I don’t think our problems are overwhelming ... they are manageable.”
Zandi said that in 12 to 18 months, the share of home sales that are distressed properties will start to drop, at which time home prices will stabilize and then start to grow.
Read the full Dow Jones Newswires article at: http://online.wsj.com/article/BT-CO-20111011-709262.html.
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