House prices would not collapse because, unlike stock prices, home prices have not been shooting up unreasonably. Still, housing markets would cool. That, for several reasons, the U.S. housing markets are likely to remain relatively strong for years ahead. But in fact, there is unlikely to be a recession in the U.S. economy. There may well be a slowing of growth as the struggle continues to at least stem the declines in other global economies.
Interest rates are more likely to go down than up.
The U.S. Federal Reserve may ease interest rates in the next month or two, as that would be a help to countries in Latin America and Asia. And lower interest rates would naturally be a further boost for U.S. mortgages and homebuying. But perhaps the biggest factor sustaining U.S. housing markets at a high level are immigrants. So far that is certainly true. Calif. Mozilo has Countrywide devising ways to reach Spanish-speaking homebuyers and other markets among recent immigrants and immigrants' children.