Wednesday, March 17, 2010
From the recent Lender Processing Services report(.pdf) comes the chart shown below depicting the latest foreclosure trend - non-foreclosures. That is, where borrowers stop making mortgage payments but stay in the house.
Does anyone know of any estimate of the impact of this extra cash on such things as consumer spending within the GDP data? Here's my back-of-the-envelope calculation for Q4:
- 3 months x $1,000 a month x 711,214 households x 75 percent = $1.6 billion