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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: MythMan who wrote (244564)6/9/2003 11:13:34 AM
From: Perspective  Read Replies (4) of 436258
 
I don't understand that one. Homebuilding will continue, albeit at reduced levels, as mortgage rates rise. However, the mortgage financing industry will virtually cease to exist when rates are allowed to turn up.

That industry is running refis at levels 10-20x originations for actual real estate transactions. The industry has attracted the interest of virtually every large corporation on the planet (read massive overcapacity), and when rates rise, their business could easily fall 90%! They've actually been forced to drop some of their dirtiest (most profitable) scams as competition has risen, and with their underlying cost bloat, many of them will just go away.

No industry is as vulnerable in the next few years as mortgage finance.

BC
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