Comments on: How Much Will the Housing Market Fall? http://www.1stMillionAt33.com/2006/06/how-much-will-the-housing-market-fall/ A site to share my tips, tools, and humble thoughts on the journey to wealth Sun, 02 Oct 2011 19:26:45 +0000 hourly 1 http://wordpress.org/?v=abc By: frugal http://www.1stMillionAt33.com/2006/06/how-much-will-the-housing-market-fall/comment-page-1/#comment-326 frugal Mon, 12 Jun 2006 17:24:26 +0000 http://www.1stMillionAt33.com/2006/06/how-much-will-the-housing-market-fall/#comment-326 I believe in California, option ARM & other ARMs are more than 60% (probably 70% if I remember correctly) out of all loans. This is merely an exercise of how much price could drop. I'm using the latest interest rates, comparing against last year interest rate. If interest rates go up further (which I think it will), more pains may come. Since calculation like mine always has plenty of assumptions, I prefer to illustrate the whole picture, and leave the rest to readers' reasoning & imagination. I believe in California, option ARM & other ARMs are more than 60% (probably 70% if I remember correctly) out of all loans. This is merely an exercise of how much price could drop. I’m using the latest interest rates, comparing against last year interest rate. If interest rates go up further (which I think it will), more pains may come. Since calculation like mine always has plenty of assumptions, I prefer to illustrate the whole picture, and leave the rest to readers’ reasoning & imagination.

]]> By: Jason http://www.1stMillionAt33.com/2006/06/how-much-will-the-housing-market-fall/comment-page-1/#comment-321 Jason Mon, 12 Jun 2006 14:54:49 +0000 http://www.1stMillionAt33.com/2006/06/how-much-will-the-housing-market-fall/#comment-321 Interesting. Any idea of what kind of loans are popular in different regions of the country? I live in Ohio and would guess 30-year conventional loans are the norm here and I've heard that California is loaded with crazy Option ARMs all over the place. If you break down a percentage of loans types in each region... and wage estimates in each region... could this give everyone a better idea of what kind of drop to expect in your area? Get a weighted-average of price drops for good regional estimates... it would be interesting. Interesting. Any idea of what kind of loans are popular in different regions of the country? I live in Ohio and would guess 30-year conventional loans are the norm here and I’ve heard that California is loaded with crazy Option ARMs all over the place.

If you break down a percentage of loans types in each region… and wage estimates in each region… could this give everyone a better idea of what kind of drop to expect in your area? Get a weighted-average of price drops for good regional estimates… it would be interesting.

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