Greenspan: Americans can deal with price drops

Nobody panic, but Federal Reserve Chairman Alan Greenspan, in a speech to mortgage bankers Monday, said homeowners nationwide could survive a drop in home prices. His rationale? Although mortgage debt is rising as more Americans try to get in on the booming housing market, most homeowners have built up so much equity in their homes that they could weather the price drop without serious harm. The observation by Greenspan may be a further sign that the housing market, while not going bust, is certainly cooling or no longer hot. more [CNN]

Sign Up for the undefined Newsletter

By signing up, you agree to TheRealDeal Terms of Use and acknowledge the data practices in our Privacy Policy.