The housing market has been a cruel goddess, destroying the finances of millions of Americans and driving the economy and financial system to near collapse.
Now the capricious deity threatens to claim even more victims, as U.S. housing prices fall to new post-bubble lows and the backlog of foreclosed properties builds ominously.
The next domino likely to topple is the so-called private-mortgage-insurance industry, which permits buyers to purchase homes without making a full 20% down payment. Private mortgage insurance covers the first 25% of a mortgage’s value again. Read here: Barron’s