Tuesday, February 5, 2008
US Mortgage holders don’t tough it out anymore, but we do
"When American households have faced hard times in previous decades, they tended to default on unsecured loans such as credit cards and car loans first â€“ and stopped paying their mortgage only as a last resort. However, in the last couple of years households have become delinquent on their mortgages much faster than trends in the wider economy might suggest... So there has been a failure in some of the key assumptions which supported banks analysis and modelling" I wonder, will the UK follow this trend and so will UK models need revision? Perhaps the resilience of our housing market is that we have not changed yet. It is still a case of "An Englishman's Home is his Castle"?