| Search by tag or site | Login to my blog ▪ Start my own blog |
 |
The Boston Real Estate BlogI am an independent real estate broker, focused on the residential real estate market in downtown Boston. |
Economists Split On Effect Of Subprime Loan Crisis
Today’s subprime mortgage moment is brought to you by Thomas Hilchey and Robin Crevier, who have turned their borrowing woes into media gold, with a local story in the Globe and another one syndicated world-wide by Reuters.
Meanwhile, The Wall Street Journal surveyed sixty economists to find out their opinions on the effect of the subprime loan crisis.
Most economic forecasters in a new WSJ.com survey believe recent turmoil in the subprime mortgage market is likely to spread to the broader mortgage market and they expect a widely followed index of home prices to fall this year.
But they still think the U.S. will avoid a recession and even a significant rise in unemployment.
"The markets may have over-reacted," said John Lonski of Moody's Investors Service. "Only businesses significantly exposed to subprime will be hurt. Mortgage repayment problems aren't as widespread as we are led to believe. If most people were having trouble paying the mortgage, it would lead to declining consumer confidence and we haven't seen that."
Of the 60 economists surveyed, 32 said it is either "very" or "somewhat" likely that the intense and speedy unraveling of the market for subprime mortgages &8212; home loans made to people with poor credit histories - will spill over to the rest of the mortgage market.
But 26 said that's not likely. Two didn't respond.
In my opinion, it's a little premature to come to any educated conclusions, but you can't stop the press (apparently).
The economists seem much more concerned about rising inflation and whether the Fed will do enough to protect our economy than any subprime lending problems.
Source: Subprime Mortgage Woes Spread; Forecasts for Home Prices Cut - By Phil Izzo, The Wall Street Journal
More posts about: mortgages finance and home economicsmortgages finance and home economics
- Where Small People Fear To Tread …
- Looking For Real Estate Agents / Bloggers
- Boston Residential Real Estate Condo Sales, October 6, 2007
- Us Gained Jobs In August & September … Did You Expect Otherwise?
- Mousy, Mousy, Mousy: City Of Boston Most At Risk For Rodent Infestation
- Oct 2007
- Sep 2007
- Aug 2007
- Jul 2007
- Jun 2007
- May 2007
- Apr 2007
- Mar 2007
- Feb 2007
- Jan 2007
- Dec 2006
- Nov 2006
- Oct 2006
- Sep 2006
- Wishing Wealth
- Don't Mess With Taxes
- Poor and Stupid
- Windy City Blues
- Financial Rounds
- Millionaire Now! by Larry Nusbaum
NOTE: Please click on the charts below to enlarge them if [read more]
NOTE: Please click on the charts below to enlarge them i [read more]
Hedge funds have made billions this year shorting the banks, [read more]
<< My Home | TheMoneyBlogs Home