Friday, January 10, 2014

Home Equity Gains Spur the Economy as Owners Buy Cars: Mortgages - Bloomberg

Home Equity Gains Spur the Economy as Owners Buy Cars: Mortgages - Bloomberg: "Rising home values are boosting the economy by giving owners more confidence to buy appliances, electronics and cars, said Daren Blomquist, a RealtyTrac vice president. Every $1 gain in home equity adds as much as 3 cents to personal spending that accounts for about 70 percent of the economy, said Mark Zandi, chief economist with Moody’s Analytics Inc. in West Chester, Pennsylvania. Using that formula, equity gains in the third quarter will spur more than $12.5 billion of consumer outlays."

History is repeating itself

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