S&P: Low Mortgage Payments Key to Sustaining Home Prices

Ackerman, Andrew
October 2006
Bond Buyer;10/18/2006, Vol. 358 Issue 32489, p6
Trade Publication
The article focuses on the impact of monthly mortgage payments on the rapid increase in home prices in the U.S. According to reports, a sharp housing downturn would lead some speculative-grade bonds into default. It was believed that the rise in home prices may be sustainable if borrowers continue to have a low payment options on their homes. It was found out that the size of mortgage payments was more important in determining home prices than the level of employment.


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