Tuesday, August 22, 2006

The housing bubble by the numbers...

...from Barron's:

• 32.6% of new mortgages and home-equity loans in 2005 were interest only, up from 0.6% in 2000

• 43% of first-time home buyers in 2005 put no money down

• 15.2% of 2005 buyers owe at least 10% more than their home is worth

• 10% of all home owners with mortgages have no equity in their homes

• $2.7 trillion dollars in loans will adjust to higher rates in 2006 and 2007.


The last figure I was already familiar with, but the others are new to me, and even more scary. And as Dr. Kurt Richebacher points out [scroll down], a housing slump has a bigger impact on the overall economy than a stock-market slump.

0 Comments:

Post a Comment

<< Home