WASHGINGTON – May 16, 2011 – Americans are reducing mortgage payments at a record clip, directing cash that once went for debt into consumer spending and savings.
Low interest rates, defaults and refinancings have shaved more than $100 billion off the nation’s annual mortgage bill, an amount comparable to all unemployment benefits for one year or this year’s Social Security payroll tax cut.
“This is a form of economic stimulus that goes to Main Street rather than Wall Street,” says Nicholas Carroll, a journalist on consumer finance and author of Walk Away From Debt for a Better Future. When freed from a mortgage payment, people’s first purchases tend to be necessities, such as socks and underwear, he says.
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Read all about it at
http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=5&id=259972
Low interest rates, defaults and refinancings have shaved more than $100 billion off the nation’s annual mortgage bill, an amount comparable to all unemployment benefits for one year or this year’s Social Security payroll tax cut.
“This is a form of economic stimulus that goes to Main Street rather than Wall Street,” says Nicholas Carroll, a journalist on consumer finance and author of Walk Away From Debt for a Better Future. When freed from a mortgage payment, people’s first purchases tend to be necessities, such as socks and underwear, he says.
----------------------------
Read all about it at
http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=5&id=259972
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