Market Predictions

Lawrence Yun, chief economist of the National Association of Realtors, reports that until the economy recovers enough to start fueling sales he counts on the Federal home-buyer tax credits to provide temporary support for housing markets. He predicts home price improvement in 2010 of more than 3%.

"The headwind we face is rising mortgage interest rates," Yun said, "but the compensating factors will be the homebuyers tax credit in the first half of the year and increased job creation in the second half." The Federal Reserve has helped keep interest rates low through purchases of huge amounts of mortgage-backed securities. That program is winding down and will end in March after which many economists predict a rise in interest rates.