Real Estate Festivities are Ending
September 19, 2006 
After a five-year party, the real estate festivities are ending. Creative financing has fueled the housing mania as millions of home buyers ogled properties, then bought more house than they could afford. Disturbing fact, from the Mortgage Bankers Association: Last year adjustable rate mortgages hit a record fraction of home buying loans, at 37%. Something close to $500 billion in ARMs will reset this year, which means that millions of Americans will see their monthly payments skyrocket.
As borrowing costs rise, the National Association of Realtors forecasts 2006 sales of existing homes will fall 7% and new homes 13%. Housing starts are expected to slide by 9%.
Posted in Real Estate News
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