Housing Predictions Were Not So Good

Every year, so-called “experts” make their predictions for the housing market. As 2009 came to a close, many experts predicted two things over and over again:

1. Home prices would fall in the first half of 2010
2. Mortgage rates would be higher in 2010

Here we are over half way through 2010 and both predictions are proving to be incorrect. Home values are going up in most markets and mortgage rates are down.

This proves that many economists are much better with analysis of the past versus predictions of the future.

Just as the U.S. economy is unpredictable, so are housing prices, and so are mortgage rates.

Therefore, when you have a personal finance decision to make, evaluate your options based on the information at hand today rather than an educated guess about the future. The future, after all, is subject to change — despite what the experts forecast.

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