this housing bubble is no exception
Thursday, November 1st, 2007Bubbles implode. And this housing bubble is no exception.
When Greenspan took the Fed Funds Rate down to 1 percent (lower than the lowest rate of the Great Depression), it meant that what HAD BEEN the monthly mortgage payment on a $150,000 house suddenly became the amount of a monthly mortgage payment on a $400,000 house.
And presto - those $150,000 houses became $400,000 houses.
Lookat the highest-priced market for housing in the U.S. - the San Francisco Bay area. Foreclosures, year over year, have risen 622 percent. There have been more foreclosures in that “safe housing market” than ever before in history.
investment property