John Pitera's Market Laboratory Message Board

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Strategies & Market Trends : John Pitera's Market Laboratory

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To: John Pitera who wrote (8511)	12/6/2007 3:50:37 PM
From: Hawkmoon	Read Replies (1) of 33421

What's your take on the rate freeze? Personally speaking, if people were able to manage their mortgages at the "teaser rates", then the level of foreclosures should taper off.. Doesn't mean that demand won't also taper off as credit standards are tightened, so these folks might find themselves paying mortgages on a depreciating asset. But homes are not equities.. People find excuses for continuing to live in their homes, with the expectation that 30 years from now it will be worth more. Still not positive on the homebuilders for the reasons specified above. It was easy for banks to pass on their risk to SIVs in years past.. Now they have to own that risk and they will be much more conservative about who they lend too.. Hawk

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