Data firm takes a dimmer view of future market

First American CoreLogic says it expects a softer housing recovery than in its previous forecasts.  The mortgage data firm, which issues a monthly LoanPerformance Home Price Index (HPI), declared:

Our forecasts for the inventory of homes for sale have risen as interest rates are expected to rise, tax credits expire, and slower than expected sales over the winter due to the weather are all adding to the inventory. Collectively these effects act to contract demand (put downward pressure on prices).

After a modest increase this spring and summer, CoreLogic projects a decline in the national single-family combined index of