Nation: Improved Mortgage Market Bodes Well For Housing In '08

Lawrence Yun, National Association of Realtors, senior economist, notes that widening credit availability will help turn around homes sales. "Conforming loans are abundantly available at historically favorable mortgage rates. Pricing has steadily improved on jumbo mortgages since the August credit crunch and FHA loans are replacing subprime mortgages." Existing home sales are expected to total 5.78 million in 2007 and then rise to 6.12 next year, down from 1.05 million in '06. "A cutback in housing construction is a positive sign for the market because it will help lower inventory and firm up home prices," Yun said