POSTED: Wednesday, August 11, 2010 - 2:45pm
UPDATED: Wednesday, August 11, 2010 - 2:45pm
Housing prices continue to fall; Federal Reserve leaves interest rates at record low....
As the long hot summer continues, it seems home sellers across the nation are having to sweat it out.
One in four has dropped their price, making this the fourth straight month with more price reductions.
Cities in the Southwest seem to be leading the way with Las Vegas seeing 56 percent more price cuts, but what happens in Vegas is by no means staying there
"People just feel like their wealth is evaporating and they can't spend money. That's gonna hurt the recovery that's gonna hurt the economy going forward," says CNBC's Eamon Javers.
On that note the Federal Reserve downgraded its outlook on the economy and took measures to drive interest rates on mortgages and corporate borrowing even lower.
"The Fed sees the recovery slowing, therefore they're trying to lower mortgage rates and long term interest rates generally so business and homeowners can borrow more," explains University of Maryland economist Dr. Peter Morici.
"If you are looking for a silver lining its the fact that the interest rates are going to stay low, so if you are buying a house now is the time to do it," adds Javers.
There are plenty of sellers hoping that happens before they have to slash their price again.