Re: Bartels on Frank, etc.
Michael Hoover wrote:
home-purchasing (misnomer to call it ownership in most cases) rates increased from low 60% range to high 60% range during same period, while general assumption seems to be that rise reflects those towards lower end of income scale being able ‘to get into’ a house, i wonder how much of it is relatively young, relatively affluent types who did well during 90 buying their first homes, ain’t too many ’starter’ homes being built in orblando area, and rapidly rising property values have ‘locked out’ many people when it comes to trying to buy from existing housing stock… mh
I think the official line on this is more or less correct - that poorer people bought lots of houses in the 1990s and early 2000s, despite high and rising prices. The reason: very low downpayments and “innovative” mortgages (less than interest-only, for example). Note that the LAT piece that Jim Devine posted earlier said that a large share of debtors with adjustable mortgages are scared what will happen when the rate is adjusted upwards.
Doug