Upside Down Mortgage

Subprime Foreclosure Rates

Question: Is the subprime mortgage meltdown a sign of things to come?

Countrywide said that the housing market won't recover until at least 2009.

Stocks lost major ground again--falling 311 points.

Many homeowners are facing reality in terms of higher interest rates, mortgage payments and a record number of home foreclosures--not to mention a glutton of unsold homes on the market.

Is this what Bush meant by a "home ownership society"?

Answer: Housing has been increasing in double digit percentages for the last five years. Energy costs have doubled. Yet income has only risen in the 2-4% bracket. As with the tech bubble what we are seeing is the housing bubble, which has become un affordable to the majority of people, and as with the tech bubble a correction is being made. Housing has been overpriced, and overtaxed. This is just the beginning folks, and we will be lucky if this does not put us in a recession.

Book TV: Edward Gramlich "Subprime Mortgages"

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