Just in Time For Christmas: A Stablization in Housing Prices?

Need a little Christmas cheer? A longtime financial analyst expects housing prices in the United States to stabilize or rise after a refinancing boom, according to a report by Reuters. "It is quite likely that the country is about to enter a new mortgage refinance boom," Richard Bove wrote in a note to clients.

The take over of Fannie Mae and Freddie Mac in September, as well as Fed's plan last month to buy up to $600 billion in "agency" securities issued by Fannie, Freddie, Ginnie Mae and the Federal Home Loan Bank system have had "dramatic results," Bove says.

Mortgage rates have begun to tumble, while mortgage applications are picking up. Banks are also rehiring the mortgage loan personnel they recently fired, Bove wrote. Read the full story here.