Salt Lake City, UT (PRWEB) December 1, 2006
The American Enterprise Institute for Public Policy Research (AEI) announced yesterday that America has a one in two chance of a 2007 recession because of the current housing downturn. LoanPage.com, a complete source of mortgage loan tools and lenders, can help homeowners concerned about preserving the value of their homes in the face of recession find solutions like Home Equity Protection (HEP). HEP can guarantee homeowners that if property values in their area decline, they will be protected for all or part of that loss in value.
In "Housing and American Recessions" published by AEI, John Makin writes, "An annual drop in the growth rate of residential investment (a good measure of homebuilding activity) of more than 10 percent has coincided with a recession five of the seven times it has occurred since 1965."
Makin continues, "Housing slowdowns tend to lead recessions rather than result from them. During the second quarter of 2006, fixed residential investment fell at an 11.1 percent annual rate, followed by a 17.4 percent rate of decline in the third quarter. The intensity of the fall in U.S. residential investment during the middle two quarters of 2006 is approaching potential recession territory." Though a housing slowdown is necessary for a recession, expenditures on housing-related items and how the Federal government handles interest rates and inflation will determine whether the housing slowdown creates a recession.
Many homeowners worried about decreasing housing values may not be aware of financing options that can help preserve the value of their home. Also, as current mortgage rates move higher, some homeowners with adjustable rate or interest-only mortgages may have to refinance their home loan. The mortgage calculators, tools, and resources at LoanPage.com can help homeowners make the right financing decisions for their situation (http://www.loanpage.com/mordesk.asp). Homeowners can also find loan officers who know the industry and can recommend appropriate home loan products.
LoanPage.com (http://www.loanpage.com/) is a complete source of mortgage loan tools and resources, including mortgage calculators and a mortgage glossary. Visitors can find the answers to the most common loan questions, download a loan application, or find lenders in their area.