Housing mortgages
There are some dismal statistics relating to mortgages:
-In 2000 0.6% of home equity loans were interest only. In 2005 the number is 32.6%
-In 2005 43% of first time home buyers put no money down
-15.2% of 2005 buyers owe at least 10% more than their homes are worth.
The mortgage bubble of today is similar to the junk bond bubble in the 1980's. Rising default rates were masked by by new issuance... and I believe this is happening now. The last week of August reported a decline in mortgage applications, for the first time in quite a while.
-In 2000 0.6% of home equity loans were interest only. In 2005 the number is 32.6%
-In 2005 43% of first time home buyers put no money down
-15.2% of 2005 buyers owe at least 10% more than their homes are worth.
The mortgage bubble of today is similar to the junk bond bubble in the 1980's. Rising default rates were masked by by new issuance... and I believe this is happening now. The last week of August reported a decline in mortgage applications, for the first time in quite a while.
1 Comments:
Great San Diego Housing Flip site
http://thisoldhouseflip.blogspot.com
Post a Comment
Links to this post:
Create a Link
<< Home