Greenspan on Housing Mortgages and Home Equity

verfasst von Popeye, 05.03.2003, 19:24

-->....Clearly, after their very substantial run-up in recent years, home prices could recede. A sharp decline, the consequences of a bursting bubble, however, seems most unlikely. Nonetheless, even modestly declining home prices would reduce the level of unrealized capital gains and presumably dampen the pace of home equity extraction. Home mortgage cash-outs and home equity loan expansion would likely decline in the face of declining home prices. However, the five-year old home building and mortgage finance boom is less likely to be defused by declining home prices than by rising mortgage interest rates....

<ul> ~ http://www.federalreserve.gov/boarddocs/speeches/2003/20030304/default.htm</ul>

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• Greenspan on Housing Mortgages and Home Equity - Popeye, 05.03.2003, 19:24