Finally The Truth About The US Housing Market
While many have been forecasting a major downturn in US housing, there have been those who see no difficulties ahead, and are even forecasting more rises to come. However, it looks as though, slowly but surely, the real picture is starting to emerge. Sub Prime lending (lending to those with a low credit standing) may be about to bring down the US housing market!
It has been known for some time that so called Sub Prime mortgage institutions have been seeing a major increase in the number of customers unable to cover their mortgage payment. This has already resulted in a number of companies going “underâ€, with many more apparently ready to follow. A debate at the Federal Bank in the US has heard from leading experts that the sub prime mortgage market is set to be hit to the tune of $50 billion to $100 billion dollars by those unable to pay their mortgages - something that will have a major impact on the whole market.
Investors on Wall Street have been ignoring this threat for some time, buoyed by good economic news and high corporate activity on the stock market. If today’s news is not enough to make investors reconsider their positions, then we are in for some real trouble ahead. Investors need to realise that the Bull market has been very good to many, but slowly things are starting to come to an end, with many forecasting the economy to peak in the very short term. Those with sizeable profits should be aware of the short to medium term risks.
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