Fannie CEO doesn't see housing rebound before 2010: report

[notesdev]

http://www.marketwatch.com/news/story/fannie-ceo-doesnt-see-housing/story.aspx?guid=%7B05A0D5C8%2D532E%2D4115%2D89E6%2DCD08FA689985%7D&dist=morenews

SAN FRANCISCO (MarketWatch) -- Daniel Mudd, the chief executive of Fannie Mae, said he does not expect a real recovery in the U.S. housing market before 2010, Reuters reported Tuesday. Mudd told reporters at a meeting of the Society of American Business Editors and Writers that this year "is going to be tough" and that next year "will be similar," according to Reuters.

[Fed_Up_Grammy]

1. That's not too bad---about normal for one of these

bursting bubbles.

Makes it better for the folks saving for their first home.

[notesdev]

2. I've been calling it

for late 2011 at the earliest. I've been finding it amusing to see the head honchos of all these financial institutions slowly migrating to my position.

[DemocratInSoCal]

3. If They Are Now Saying 2010, Add 2-3 Years To That

If they say it won't rebound until 2010, then you can bet that's a Best Case Scenario.

It will be another 4 years at least before any recovery, if then.

[zonmoy]

5. Or never

most likely scenario.

[Warpy]

4. Fannie's Ceo is pretty funny

because all those jumbo loans will be resetting through 2009.

After that, we'll be dealing with the foreclosures caused by people being in an upside down position on home value, owing more than it's worth, and by people who have lost a job, divorced, gotten sick, or had another financial calamity. Housing will not begin to recover until banks work to keep foreclosed housing OCCUPIED, thus reducing the amount of empty, surplus housing on the market, driving prices down.

Unless there is massive government intervention to the banks' disadvantage, I don't see any turnaround in under 10 years and possibly 20.