The real estate and mortgage industry fell apart in 2007, what lies ahead for the new year. Our predictions:

• The Federal Reserve will continue to lower the fed funds rate down to 3.5%
• The stock market will reach 15,000
• The credit card industry will be the focal point of financial problems
• The housing market will begin its rebound in the fall of 2008
• A Democratic president will be elected
• FHA will dramatically improve its loan offerings and be a major factor in fixing the housing market
• The credit crunch will be over in the first quarter of 2008
• There will be further bank consolidation
• Fannie Mae and Freddie Mac will gain permission to increase their loan portfolio sizes
• Mortgage rates will fluctuate between 6-7%
• New construction will fall to 20 year lows, eliminating excess supply and aiding with the overall housing rebound
• Home prices will fall nationally an additional 5%
• More people will use the Internet to buy homes than ever before

Please keep in mind these are only are predictions for the upcoming year and check back often to chart our progress.

12-30-2007 ? LoanNetwork.com

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