Housing.com News, Analysis & Opinion: Katrina's Repercussions for Housing

Speaking of Bankrate and listening, here's a breakdown of how option ARM's have gone beyond their intention. Speculators and lenders got excited over the idea of making tiny payments on huge homes...the former because they thought they could make a quick profit from appreciation, then flip the property and move on. The latter because they knew how untrue that might turn out to be, and that they'd still be able to collect on the loan in a much heavier fashion.

In terms of flipping, Greenspan is practically an Olympic-caliber gymnast when it comes to his statements on ARMs. Amazing.

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It's tough to stay focused on reporting housing news when your eyes keep turning to the incredible devastation and chaos in the Gulf Coast. But one thing we have to remember is that the world keeps turning, and that means planning ahead for the future. Given that Katrina will send shocks through the employment and labor market, that also means huge repercussions for the housing scene. Good and bad both...good because new construction projects will mean new homes and businesses, which means economic improvement. Bad because it may also mean the propping up of the already-stretched housing prices far beyond their due date. Holden Lewis over at Bankrate has an insightful take on Katrina and falling mortgage rates in his blog. Good stuff. Would that people would listen. Speaking of Bankrate and listening, here's a breakdown of how option ARM's have gone beyond their intention. Speculators and lenders got excited over the idea of making tiny payments on huge homes...the former because they thought they could make a quick profit from appreciation, then flip the property and move on. The latter because they knew how untrue that might turn out to be, and that they'd still be able to collect on the loan in a much heavier fashion. In terms of flipping, Greenspan is practically an Olympic-caliber gymnast when it comes to his statements on ARMs. Amazing.