I hear a lot from mortgage bankers, real estate agents and international investors. Mostly they ask about the outlook for U.S. real estate next year and beyond. The good news is that the recovery in home prices seen in much of the U.S. is real and, we believe, sustainable. The general disappearance of any discount for distressed, bank-owned properties (real estate owned) is one very real sign that the worst days of the financial crisis since 2008 are largely behind us.
But we are far from finished building a strong foundation for a full recovery in housing markets, especially home finance.