Federal Reserve: Household Equity at All Time Lows [View article]
With all of the new lending options that came onto the market in the last 10 years--easy refinancing for home equity withdrawal and reverse mortgages for the aging populalation--we would have been creeping toward this anyway, even if housing prices had just hit a ceiling rather than collapsed. This decline is also related to the decline in American savings, reported last year as having fallen below 0% for the first time last year (though those figures exclude investments, making them less dire, but the trend is still there)...
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With all of the new lending options that came onto the market in the last 10 years--easy refinancing for home equity withdrawal and reverse mortgages for the aging populalation--we would have been creeping toward this anyway, even if housing prices had just hit a ceiling rather than collapsed. This decline is also related to the decline in American savings, reported last year as having fallen below 0% for the first time last year (though those figures exclude investments, making them less dire, but the trend is still there)...
Mar 07 11:26 am
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