Tagged : vicious cycle

Found 1 blog entry tagged as "vicious cycle".

How can this be? Housing hasn’t been this affordable in many years, and interest rates are at record lows. Yet as everyone knows, the market remains stuck in the mud. Too many unsold homes, too few interested buyers. Experts have a lot of complex things to say about what’s going on, but the answer is really pretty simple.

An uncertain job future makes taking on a mortgage—even a historically low-rate mortgage that right now can be used to buy an exceptionally well-priced home—a very tough sell. So with unemployment still at record highs, it just makes sense that the housing market too continues to struggle.

It’s a predictably vicious cycle. Stubborn unemployment stalls the housing market, which then puts even more people out of work. That’s because,

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