More specifically, Witter's expectations are colored by rather disturbing data:
• 32.6% of new mortgages and
home-equity loans in 2005 were interest only, up from 0.6% in 2000;
• 43% of
first-time home buyers in 2005 put no money down;
• 15.2% of 2005
buyers owe at least 10% more than their home is worth (negative equity);
• 10% of all home
owners with mortgages have no equity in their homes (zero equity);
• $2.7 trillion
dollars in loans will adjust to higher rates in 2006 and 2007.