Sunday, August 27, 2006

Daily Kos: How a Housing Slowdown Will Cause a Recession: UPDATE

"More specifically, Witter's expectations are colored by rather disturbing data:
� 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 (negative equity);
� 10% of all home owners with mortgages have no equity in their homes (zero equity);
� $2.7 trillion dollars in loans will adjust to higher rates in 2006 and 2007."

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