Great article on Yahoo finance today, about the excessive leverage of the 3 big mortgage insurance companies, and how close they are to collapse.
http://finance.yahoo.com/loans/article/ ... et=&ccode=
It's hard to imagine a world where house prices have anywhere to go but down if PMI is taken out of the equation. Banks will start demanding 20% down payments, as well they should.
The Next Mortgage Bombshell
Moderator: Global Moderator
The Next Mortgage Bombshell
"I came here for financial advice, but I've ended up with a bunch of shave soaps and apparently am about to start eating sardines. Not that I'm complaining, of course." -ZedThou
Re: The Next Mortgage Bombshell
If interest rates were to rise that would also push home values down, since people normally shop in terms of the monthly payment they can afford, not the value of the house itself.
Lots of headwinds for housing that are going to continue for quite a while, I think.
Lots of headwinds for housing that are going to continue for quite a while, I think.
Q: “Do you have funny shaped balloons?”
A: “Not unless round is funny.”
A: “Not unless round is funny.”