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Wednesday, September 03, 2014

'Mortgage crisis' is coming this winter

http://www.cnbc.com/id/101963571

Bove envisions a scenario in which long-term financing, like the ubiquitous 30-year mortgage, that has come with fixed interest rates is endangered as mortgage buyers dry up.
"This means there will be less money available to fund housing, and the terms of the available funds will be considerably more onerous than what was available under 30-year, fixed-rate loans," Bove said in a report he sent to clients Tuesday. "This means higher monthly payments and lower housing prices. It means a crisis in the mortgage markets—and the economy."

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