The US government has already tried pumping in millions of dollars into the US housing sector through the special tax credit scheme and even extended it by another quarter. But nothing seems to be helping the industry recover.
The real thing that needs to happen for the housing sector to recover, is a steady improvement in the employment levels. But the employment level is only set to go down further in the coming months, as private sector is once again starting to cut down on manpower.
The government sector is also expected to cut down on manpower, once the November elections are over. That would spell double trouble for the housing sector, and the bankers are waiting to pour fuel into that fire, by seizing more homes in the coming months.
So expect the US housing sector to hit a new low in the coming months. The record low 4.42 percentage rate for mortgage loans is only an early warning for the impending crisis.