Housing Market Recovery on Shaky Ground

The Associated Press opened an article on the housing market with this gloomy statement:

The recovery in the housing market is at risk of collapsing.

Home sales are sliding, prices are stalling and foreclosures are rising. And mortgage rates are likely to go up after next week, when the Federal Reserve ends a program that has driven them down.

The trend could threaten the broader economy, economists warn. People whose home equity is stagnant or shrinking are less likely to spend freely.

With the housing market on shaky ground, we have to be careful with our actions that deal with handling this situation. At the moment, it doesn't seem like the housing market will be drastically improving anytime soon, and that mortgage rates will likely increase as a result of the Fed ending a program that they created to help keep the mortgage rates at an all time low. What we see in the housing market will almost indefinitely affect the rest of the economy; trying to salvage or protect the recovery of the housing market is something that should be taken very seriously if we want to see our economy pick back up in the near future.