A new report on mortgage defaults argues that rising property prices have disguised the true extent of problems in the home loan market. The report by the credit ratings agency Fitch says rising prices have let borrowers sell or re-finance when they get into difficulty.
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If that is the case, all it would take is an economic downturn that flattened house prices and drove up jobless rates to cause serious mortgage defaults nationwide.
» Mortgage stress not localised, experts say – The ABC, 28th November 2007.