What's Behind America's Housing Crisis? April 03,2008

Submitted by lusk-admin on Tue, 07/10/2012 - 16:56

...Prof. BOSTIC: Housing market is very weak. There are a couple of things that are going on. You've alluded to the credit crunch, and we've seen the lending community by and large cut off the credit that was making housing affordable for a lot of households, and that - what that's meant is that we have a glut of properties on the market that weakens the price power.

And in addition, a lot of the folks who got into those initial mortgages, are using some of the alternative mortgage products, have found that those products didn't really work for them and that they're struggling to meet those payments having to consider foreclosure, default, reworking, and that also has weakened the housing market...