So I was looking around perusing the net and according to people who analyze these things the U.S. Housing market has burst read more. Basically I got from the article that people used their inflated housing properties and huge equity to fund there debt spending. Some sources are citing that the average U.S. citizen is sitting on $23,000 in debt, most of which is not related to housing. The inflated housing prices caused the rise in ARM loans where people basically where negotiating low monthly mortgage payments that caused there actually loan to increase over time like a negative amortization loan (Negative amortization arises when the mortgage payment is smaller than the interest due and that causes your loan balance to increase rather than decrease). Once the rates rise like they have recently and are predicted to people are looking at the monthly payment going up but now are financing a higher mortgage with less equity. What does this all mean right now no one can be sure. Some predict that we are headed for a recession on the scales of the Great Depression while others say we will experience a mild recession or none at all. One thing we all can do is take a look at our own houses and financial situations and maybe go on the Oprah Debt Diet. BOOOMMMM!!!
