- Spain's Debt Costs Near Danger Level: Is Bailout Next?
- US Markets Will Be Watching Europe—And Jobs Report
- India's Tumbling Rupee Roils Convertible Bond Market
- European Companies Plan for Greek Unrest and Euro Exit
- Japan's Marubeni Nears $5 Billion-Plus Gavilon Deal
- Public Pensions Faulted for Bets on Rosy Returns
- Greece to Leave Euro Zone on June 18: Wealth Manager
- Italy 2-Year Borrowing Costs at Peak Since December
- Euro Bond Wins Supporters, but Details Remain Vague
MOST SHARED
- India's Tumbling Rupee Triggers Convertible Bond Turmoil
- Marubeni Nears $5 Billion-Plus Gavilon Deal
- Greece to Leave Euro Zone on June 18: Wealth Manager
- Olympus Expected to Settle With Former CEO Woodford
- Greece Pours $22.6 Billion Into Four Biggest Banks
- Asian Stocks Decline on Spanish Debt Woes
- Spain's Borrowing Costs Near Danger Level: Bailout Next?
- Draft EU Report Attacks Italy on Economy
- Facebook IPO Fiasco: 10 Things Underwriters Got Wrong
- European Firms Plan for Greek Unrest and Euro Exit
MOST POPULAR
HOT ON FACEBOOK
Housing in 'Double-Dip': Economist Zandi
Text Size 
CNBC.com Writer
 |
Peter Gridley | Getty Images |
“Tomorrow we are going to get an existing home sales number that that I think is going to be very, very weak, closer to 4 million units, which I think would be a new low in this cycle,” said Zandi, who is also the author of forthcoming Paying the Price.
“We probably, almost assuredly, will experience more house price declines. By those two criteria, I think that would qualify as a double dip.”
Home prices fell 5.1 percent in June to an annualized pace of 5.37 million homes, the weakest since March.
Zandi said the housing situation can’t really improve, in spite of the millions spent by the government, until more people have jobs. He also said that homeowners whose mortgages are guaranteed by Fannie Mae [FNMA
Loading...
()
] and Freddie Mac [FMCC
Loading...
()
] need help.
“There are millions of homeowners with Fannie and Freddie loans that are having trouble refinancing these very low rates, and they are paying on their loans and they are have a job, but they are underwater, or their credit score has been a little bit impaired,” said Zandi.
“Under current rules, they can’t capitalize the transaction costs into the mortgage balance and they don’t feel comfortable to do that. I think there may be a creative way to facilitate that process. And I think that that would be helpful to forestall further foreclosures and actually put some cash into people’s pockets at a critical time.”
Data is a real-time snapshot *Data is delayed at least 15 minutes
