More on Homes, Mortgages And Banks

My Dearest Moo Moo Cow,

Are you feeling uneasy over the US subprime mortagages and do you wonder about the impact it has on the US Banks? Well, there is this article posted on Morningstar.com which is worth a read, How Mortgage Troubles Impact U.S. Banks -- Part One.

And over on the CNN website, it was reported that the National Association of Realtors expects its measure of home prices to fall this year for the first time since the group began keeping track nearly 40 years ago. See Home prices set for first drop in 40 years

• The Realtors said the problems in subprime could actually lead to a stronger housing market over time if tighter lending helps prevent buyers from getting in too deep with low "teaser-rate" mortgage loans before being hit with much higher payments a year or two later.
  
  "Simply stated, a loan with the lowest monthly payment probably isn't in your best interests - borrowers need to understand worst-case scenarios," David Lereah, the Realtors' chief economist, said in a statement.

regards