Thursday, July 21, 2005

MAESTRO ON THE HOUSING MARKET SPUME


From yesterday's House Financial Services Committee hearing:

The apparent froth in housing markets appears to have interacted with evolving practices in mortgage markets. The increase in the prevalence of interest-only loans and the introduction of more-exotic forms of adjustable-rate mortgages are developments of particular concern. To be sure, these financing vehicles have their appropriate uses. But some households may be employing these instruments to purchase homes that would otherwise be unaffordable, and consequently their use could be adding to pressures in the housing market. Moreover, these contracts may leave some mortgagors vulnerable to adverse events. It is important that lenders fully appreciate the risk that some households may have trouble meeting monthly payments as interest rates and the macroeconomic climate change.

No bubble, just a little effervescence.

1 Comments:

At 7:34 AM, Blogger Lexie said...

You have an interesting blog here. Some of the things people put are kind of strange...

Anyway, I like your blog and will proably be back.

Take care.

P.S. Another cool site I like is a affiliate marketing statistics site that is about information marketing and a little other stuff.

 

Post a Comment

Links to this post:

Create a Link

<< Home