Interesting data point that has been coming up a lot in various discussion groups: could free-riders who are living in homes without paying mortgage payments be using the extra cash flow on superfluous purchases?
Mark Zandi of Moody’s thinks so:
He estimates it at $8 billion per month. As ZH says, go celebrate the end of contract law in America – skip loan payments and go buy yourself something nice!
Uh Oh – they may be coming to get you now:
With rates rising and first time homebuyer credit ending, maybe banks know they have to get rid of non performing assets now in case of a double dip?