The Defaulting Homeowner
Bonds backed by home loans to the riskiest
borrowers, the fastest growing part of the $7.6
trillion mortgage market, have lost about 2.5
percent since September on concern an 18-month
rise in interest rates may force more than
150,000 consumers to default.
As I've said before, most of the housing loans are
made with variable-rate mortgages. As interest
rates go up, so will the defaults.
Read.
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