Wednesday, November 25, 2009

Negative Housing Equity By Vintage Year

When people have negative equity in their house, they are much more likely to default on their mortgage. More defaults obviously means more housing supply and further downward pressure on prices. Here is a look at negative equity by vintage year for mortgages. Basically, people who took out mortgages at the top of the housing market in 2006 are in trouble. From Clusterstock:

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