It has to slow down eventually. There's gotta be a limit to how much the middle class can afford on a house. Hard to a sell a $11.7 million house to a working family of 2.
This is a no-brainer. Look at the post Internet stock market.
Today;s housing market is equally well-positioned to shit itself. You'll soon have a lot of ARM rates rising and leaving people with the proverbial "payment shock".
They'll be upside down on the house and unable to make the payments, watching the negative equity grow.
A strong job market could offset this to a degree, but the overwhelming majority of Americans buy houses based on the monthly payment, and they are going to get hosed post election.
Today;s housing market is equally well-positioned to shit itself. You'll soon have a lot of ARM rates rising and leaving people with the proverbial "payment shock".
this is the part I've been worried about most, (well, I'm not worried cause I don't have one) but it seems this has been a VERY popular option recently, and the statistics prove more people have ARM's than ever before
this is the part I've been worried about most, (well, I'm not worried cause I don't have one) but it seems this has been a VERY popular option recently, and the statistics prove more people have ARM's than ever before
How many mortgage brokers do you personally know? 1000? they are everywhere. I have a friend who is a recruiter and he places crazy peeps in mortgage broker jobs.
It;s become the equivalent of "boiler room" type stock brokerages - dumb people are making lots of money by ripping people off. (get ready for serious backslides when rates rise, but until then...)
Anyway, as they have become more commission hungry, they've tried to sell people on anything they can. Thus, the ARM crush.
Previously, banks were more concerned with the secondary market and the secondary market was more concerned with being able to securitize mortgage pools.
i'm not sure where that concern went, but it;s going to assream a lot of people.
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