|
 |
Greenspan
Warns Than Housing Prices Will Simmer Down
|
Thu,
1 Sep 2005 11:36:49 EST
The man who (all
too correctly) warned of "irrational exuberance" in
the stock market six years ago is evidencing increasing nervousness
about the housing market.
In his strongest
statement to date, Federal Reserve Chairman Alan Greenspan
told an audience in Jackson Hole, Wyoming last week that it
was inevitable that housing prices will "simmer
down." As part of that process, the Chairman said, home
sales will slow and price increases will moderate or might possibly
even decline. This, he said, would put a damper on "home
equity extraction" (we assume this means cash out refinancing)
which will impact the larger economy by slowing personal consumption
which has been fueled by that "extraction."
Chairman Greenspan made his remarks at the closing session of
a symposium sponsored by the Federal Reserve Bank of Kansas City
on August 27.
Greenspan has
spoken often over the last few months about what he has refused
to call a national bubble but has frequently referred to as "froth" in
regional markets. He has also warned about new mortgage products
such as interest only and hybrid adjustable rate loans on the
basis that homeowners could find themselves unable to pay their
mortgages should rates rise suddenly and/or dramatically. He
has also denied that the multiple rate increases that the Federal
Reserve has put in place were designed to cool the housing
boom.
In his closing
remarks to the conference, probably his last appearance before
the group as his 2006 retirement approaches, the Chairman further
stated that "the surprisingly
high correlation between increases in home equity extraction
and the current account deficit suggests that an end to the
housing boom could induce a significant rise in the personal
savings rate, a decline in imports, and a corresponding improvement
in the current account deficit."
While we report
his remarks, it seems only fair to remind you that Chairman
Greenspan once famously stated, and we may be paraphrasing
but only slightly, that "if
I have made myself clear, I have obviously misspoken."
We bow to his wisdom and self deprecation.
|
| << Back
to Mortgage Home Links |
California
Home Equity Loans Home >> |
 |
Orange County, California Home Loan Center
Home Equity Loan Source
3943 Irvine Blvd., Suite 44
Irvine, CA 92602
sourcecompanies@gmail.com
Home | Mortgage Resources | Home Equity Loans | Debt Consolidation Loans
New Purchase Home Loans | Mortgage Refinancing Loans
Rate/Term Refinance | Second Mortgage | Mortgage Calculator
Mortgage Glossary | Loan Checklist | Loan Programs | About Us
Contact Us | FAQ's | Site Map | Privacy Policy | Mortgage Resources
Home Equity Mortgage | Home Equity Mortgage Resources
Web Real Estate Resources | Web Resources |
Search Terms: Online Borrowing, Low Interest Rates, Free Mortgage Quotes, Mortgage Calculator, Bad Credit Loans, Over Equity Loans, Home Equity Loans, Mortgage Quote, Mortgages, California Home Mortgage Loan, Adjustable Rate Mortgage, High Risk Loans, Second Mortgage, Debt Consolidation Loans, Home Improvement Loans, Refinancing, Mortgage Reduction, Commercial Loans, Online Borrowing, Low Interest Rates, Free Mortgage Quotes, Mortgage Calculator, Bad Credit Loans, Over Equity Loans, Home Equity Loans, Mortgage Quote, Mortgages, New Purchase Home Mortgage Loan, Adjustable Rate Mortgage, High Risk Loans, Mortgage Refinancing Loans, Second Mortgage, Debt Consolidation, Home Improvement Loans, Refinancing, Mortgage Reduction, Commercial Loans, Online Borrowing, Low Interest Rates, Free Mortgage Quotes, Mortgage Calculator, Bad Credit Loans, Over Equity Loans, Home Equity Loans, Mortgage Quote, Mortgages, California Home Mortgage Loan, Adjustable Rate Mortgage, High Risk Loans, Home Loans California Home Loans, San Francisco, Los Angeles Ca, Orange County, Irvine Ca, Newport Beach, San Jose, San Diego, Sacramento, Oakland, Sunnyvale, Anaheim, Irvine Ca, Palm Spring, Long Beach Ca, Santa Barbara, Fresno, Santa Cruz, San Mateo, Santa Clara, Fremont, Concord, Palo Al To, Santa Rosa, Whittier Ca, Riverside, Pasadena, Redding, Monterey Ca, Bakersfield, Berkeley, Mountain View Ca, Santa Monica, Pleasanton, Davis, S Tock Ton, Newport Beach, Yosemite, Burbank, Southern, Huntington Beach Ca, Van Nuys Ca, Carlsbad, Redwood City Ca, Northern, Walnut Creek Ca, Seal Beach, Glendale, Santa Ana, South Lake Tahoe, Livermore Ca, Modes To Ca, Roseville, Fuller Ton, Chico, Oceanside, Corona, Lake Tahoe Ca, Yorba Linda, Cupertino, Napa Ca, Torrance Ca, Milpitas Ca, San Luis Obispo, Mission Viejo Ca, Ontario, Temecula, Hayward Ca, Beverly Hills, San Ramon, Folsom, Thousand Oak, San Rafael, San Bernardino, Salinas, Simi Valley, Sonoma, Death Valley Ca, Eureka, Ventura Ca, Los Angeles, Orange, Palm Desert, Fairfield, Costa Mesa, Palmdale, Valencia Ca, Sherman Oak Ca, Arcadia, La Jolla Ca, Carmel Ca, Tracy Ca, Vallejo Ca, Lancaster Ca, Menlo Park Ca, Truckee Ca, Aliso Viejo Ca, Vacaville Ca, Visalia Ca, North Hollywood Ca, Los Gatos Ca, Malibu Ca, Northridge Ca, Mammoth Lake Ca, Woodland Hills Ca, Los Al To Ca, Half Moon Bay Ca, Mill Valley Ca, Laguna Niguel Ca, Laguna Beach, Laguna Hills, Daly City Ca, Paso Robles Ca, Laguna Beach Ca, Union City Ca, Redando Beach, Tustin Ca, Lake Forest Ca, Ukiah Ca, Merced Ca, Monterey Park Ca, Culver City Ca, Vic Torville Ca, Manhattan Beach Ca, Castro Valley Ca, Stanford Ca, Lodi Ca, Elk Grove Ca, Vista Ca, Hawthorne Ca, Hemet Ca, Hollister Ca, West Covina Ca, Canoga Park Ca, West Hollywood Ca, Walnut Ca, Venice Ca, Morgan Hill Ca, Alamo Ca, Moreno Valley Ca, Rowland Heights Ca, Laguna Hills Ca, Hacienda Heights Ca, Westminster Ca, Lafayette Ca, Manteca Ca, Encino Ca, Hermosa Beach Ca, Upland Ca, Watsonville Ca, Rancho Cordova Ca, Martinez Ca, Hanford Ca, Lompoc Ca, Lakewood Ca, Chatsworth Ca, Marysville Ca, Murrieta Ca - Home Equity Loan Source |
Designed & Maintained by: 1EZ Consulting OC Website Design Experts - Resource Exchange - Resource Directory |
|
© Copyright 2005, Home Equity Loan Source 
