Bad habits should not be continued in 2011. Economist predicted 2011 as a tough one for the financial market.  They predicted that conditions of the financial market will remain same as was in previous fiscal. They uttered it is likely to be renewable year for economy. Economic experts have five Financial Predictions for the year 2011.

1. Home Sales Will Be Fall

Economists predicted an overall decline of 7% in the sales of home product. They termed this year as another continuation of decrease in the sales of house-hold products. It would be a dark year for the housing market. Consumers will be inadequate in showing the positive attitude in buying market. The reason behind such behavior of consumer is the soar job market.

They have now limited opportunities in the job market. A recent study shows that nearly 70% of Americans will not buy a new house. They rent a house instead. Preference will be given to the rent house in this tough fiscal condition. Predict a good future of housing schemes in 2011, is out of the question.

2. Student Loans Will Cut Down

News of student loans will be seen in Newspapers and Channels. Due to the sour jobs market, the demand in student loans is high and supply is too short to meet such demand. Weak jobs market and increasing loan default rates will cause a stir in students.

Many lenders will allow borrowers who owe more than $30,000 in principal and interest to extend the term beyond the standard 10 years, thus reducing monthly payments. The amount of interest you pay will increase, though, particularly if you extend payments over the maximum term of 25 years.

3. Modest Improvements in Job Creation

2011 will be tough one for job hunters. Post recession era may not help the degree holders to get the job of their choice. According to statistics more than 15 million Americans are unemployed. And they surely are going to reconsider their career planning. There will be no room for old job now.

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On Friday the Federal Reserve has made plans for buying agency mortgage debt maturing between December 2010 and November 2011.

When will the Purchases Begin?

The purchases would start to begin from 10:30 a.m. EST. It has been pointed out by Wrightson ICAP analysts that the central bank has reached its self-imposed 50% limit of total holdings of the Fannie Mae (FNM) 1.75% notes due Mar. 23, 2011.

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Existing home sales have taken an upwards turn by 6.1 percent in the South this past February. On a national scale, an upwards increase of 5.1 percent has been noted in the month of February as well. Compared to February 2008, the rate is still down by 11 percent.

This information, when matched with the fact that more than 40 percent of the home sales across the US were of foreclosed properties or those in default, can be a major cause for concern. Also, the fact that most of the defaulted properties were sold for less than the mortgage balance, owing to the fact that despite a gradual increase in sale, the prices are still plunging, is another reason for concern.

Across the country, homes are selling for the lowest prices possible, since more expensive homes are not doing as well as the lower priced once, pulling down the median prices continually. In the South alone, the decline in the median prices has been 10 percent less than a year ago, at $146,700 approximately.

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