I found interesting his comment that the Fed could reverse the trend by lowering the prime by 1%. For a $230,000 loan, the difference between monthly payments between 6.5% mortgage and a 5.5% mortgage is $145. I can’t imagine that would make enough difference nationwide to keep people in their homes or increase demand.
There’s another video on the same page that is a clip from a local TV news broadcast in the Sacramento area. This piece talks about the high foreclosure rate in one of the zips up there, and focuses on a couple residental subdivisions where 20% and 25% of the homes have been taken back from the banks, and where they are unable to resell those homes at even 50% off the 2006 purchase prices.
