5 reasons why falling home prices will be good for the economy – Higher homes values does not mean higher home equity, financial sector profits back up to 30 percent of all corporate profits, the mortgage debt equation.

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5 reasons why falling home prices will be good for the economy – Higher homes values does not mean higher home equity, financial sector profits back up to 30 percent of all corporate profits, the mortgage debt equation.

By stop network ⋅ August 29, 2010 ⋅ Post a comment

Filed Under Corporate Profits, Economy, Equity Position, Financial Sector, Home Equity, Household Budget, Mortgage Debt, Negative Equity, Red Line

A recent report shows that 11 million homeowners with a mortgage are underwater with a deep red line item on their household budget. Add into the mix those with less than 5 percent equity and we realize that 28 percent of all “homeowners” are either in a negative equity position or teetering close to it. [...]