Will Real Estate Market Recover in 2010?

So far, this spring is promising to be busy for the real estate market. The rest of the year, after the federal program for homebuyers expires, is still in question. If home sales increase this year, so will the mortgage rates. However, if the unemployment rates stay high or even increase this may cause another wave of foreclosures. The current homeowners will abandon their properties due to declining values and increase in negative equity. This will bring home values even lower. Strict lending practices don’t allow banks to lend to riskier buyers and practicing tight guidelines for those who qualify. So far, the outlook for the real estate market in 2010 remains uncertain after April 30the deadline.