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The growth in US housing recovery has come to an end. MBA reports show a drastic depreciation in their 2014 growth forecast.
The Mortgage Bankers Association (MBA) lowered their forecast for combined new and existing home sales in 2014 to $5.28 million, which will be first annual drop in over four years. The mortgage lending volume is also expected to decrease for the first time in three years with estimated purchases of $595 billion.
According to consumer strategists at Global Hunter Securities LLC, who foresaw the slowdown, the market is suffering due to buyers’ stagnant incomes, lack of credit and the increasing prices. Reports also indicate that the economy is mostly generating lower-paying jobs, which adds to the depreciation in home sales.
Read the full article at Bloomberg.com.