Here's some interesting facts you might not want to forget:
In California, interest-only loans accounted for 61 percent of new home mortgages in January and February—compared to less than 2 percent in 2002! A conventional 30-year fixed-rate mortgage for a median-priced home is out of reach for 82 percent of California households, even though interest rates remain very low by historical standards.
and what about the speculators?
A Phoenix homebuilder estimates that as much as 60 percent of local new housing developments are owned by investors. In South Florida, sales to investors are as high as 80 percent in some subdivisions. Many of these buyers don’t care if their rental income is less than the mortgage payment because home prices are climbing much faster than the amount they lose each month.
or
Since 2001, a whopping 43 percent of all net private sector jobs created have been in housing-related industries! Today, more than 60 percent of bank assets are tied to mortgages.
The Trumpet.com
