NationalMortgageNews tells MHProNews.com Bank of America/Merrill Lynch Global Research analysts say home prices fell 3.2 percent in the second half of last year, but adds prices will bottom out this spring. Last Nov. B of A said housing prices would fall another 4-5 percent this year, but now says but now cites positive policy developments such as the HARP 2.0 program and the $25 billion settlement between five major servicers and state attorneys general. Additionally, the REO (Real Estate Owned)-to-rental bulk sales initiative that converts foreclosed homes to rental units will reduce the number of homes on the market. However, the report predicts prices will remain flat until 2014. In an ironic twist, B of A is cutting its residential origination and servicing presence.
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