If you’re someone who is fiscally responsible and has to make sure that every I is dotted and every T is crossed, this post is going to make your blood boil.Â If you’re someone who has no idea about your finances, this post will hopefully be a wake up call.
According to an article published on Bankrate.com, 34% of homeowners do not know what type of mortgage they have!Â When I read this figure, I literally had to do a double take.Â If buying a house is the single largest purchase most of us will make, I’d hate to see how ignorant and irresponsible these people are in other aspects of their lives.
And I can’t even tell if thatÂ was the most frightening part of the article!
When asked, “How often do you worry about whether or not you’ll be able to afford your home payments next year?” onlyÂ 53% responded never, and only 17% responded rarely.Â That means that 30% of us have some major concerns about whether or not we can afford our homes.
The reason why I find this statistic to be more terrifying than the firstÂ is because thisÂ tells me that the drop in the housing market is FARÂ from over.Â More and more people are going to begin to default on their loans, which will continue to saturate the market and drive it down.
Unfortunately, I don’t think we can count on The Fed lowering interest rates to help keep the housing market afloat, thanks to the fact inflation is going to become a very real problem thanks to skyrocketing energy and health care costs.Â That and the fact the dollar really can’t handle any more devaluation.
All of that being said, it looks like it’s going to be a tough next couple of years for the housing market.