>>>As for household equity going down to 57%, that is mostly due, IMTO, to the fact that a much greater percentage of households are now owners of their own dwelling, and thus earlier in the curve of building equity in their real estate holdings, I view that as a positive rather than negative development.<<<
Zeev, The trend here has to be a negative if you take in consideration the growth on mortgage debt. Many of these new buyers have very little equity. Any correction will put them in a position of negative equity. In my opinion we have made it much too easy for some to buy homes. When interest rates go higher we should see value drop. Many of these new buyers will have little incentive not to walk away from these mortgages that show negative equity.
Joe
