Hope for homeowners

6 October 2010 By Christopher Swann

Folks already depressed by the shrunken value of their biggest asset should skip the IMF s missive on the risk of a double dip in property prices. The fund s grim outlook is hard to dispute. But three historic measures now suggest that homeowners can put down the revolver.

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The International Monetary Fund highlighted the threat of a double dip in the U.S. housing market in its semiannual health check on the global financial system.

The fund's Global Financial Stability Report said powerful downside risks to house prices remained.

IMF economists argued that tax credits, which recently expired, could have brought forward demand, leading to weakness in coming quarters. The high rate of foreclosures along with the failure of loan modification schemes raised the prospect of further pain for homeowners.

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