It looks like the current wave of mortgage refinancings has run its course, following on the heels of an unprecedented boom in home ownership, mortgage lending, and home equity withdrawals. In Y2K, on average, home equity actually DECLINED, despite record home ownership! Now with unemployment rising and news of new layoffs rolling in almost daily, a crucial question is in the air. Are we on the cusp of an unprecedented bust in housing prices and home lending defaults?
The real estate bust index was created to help us find exciting new, err, opportunities in the coming market debacle (or just allow us to hedge whatever real estate we may currently own against a collapse in prices).
Got FNM puts?<g>
(Photo courtesy of bubblemeter.blogspot.com
Housing bubble primer:
Calculated Risk's Blog (lots of useful housing charts):
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