Fannie Mae doesn't expect the housing market to rebound until after 2008, according to an interview Chief Executive Daniel Mudd gave to Bloomberg News in which he offered a far bleaker assessement than the National Association of Realtors, which expects a rebound in the first quarter of next year.
"We don't think we hit a bottom until the end of '08 and then we have some period of time to work our way back up again,'' he told Bloomberg, adding that he expects U.S. home prices to fall 2 percent to 4 percent this year and even more next year.
Wow.
Does this give Ben Bernanke cover to cut interest rates a second time or even a third? Does this mean that the government is going to need to do more to help homeowners?
Stay tuned.
Why is gold making a new high, trading at $1,118.00 per ounce?
Chasing Value: Ten stocks for 2010 -- Part 1 
Closing Bell: A six-day rally (AIG, REGN, M, MOT, PALM, RIMM)
