http://www.mortgageguideuk.co.uk/blog/house-prices/largest-drop-in-house-prices-for-12-years/ Simplifying Finance, Housing and debt Fri, 10 Feb 2012 11:38:14 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.mortgageguideuk.co.uk/blog/house-prices/largest-drop-in-house-prices-for-12-years/comment-page-1/#comment-680 Will A Fall in House Prices cause a Recession? | Mortgage Blog Fri, 30 Nov 2007 15:05:09 +0000 http://www.mortgageguideuk.co.uk/blog/housing/largest-drop-in-house-prices-for-12-years/#comment-680 [...] ← Largest Drop in House Prices for 12 Years [...] [...] ← Largest Drop in House Prices for 12 Years [...]

]]> http://www.mortgageguideuk.co.uk/blog/house-prices/largest-drop-in-house-prices-for-12-years/comment-page-1/#comment-679 Rob Fri, 30 Nov 2007 11:54:59 +0000 http://www.mortgageguideuk.co.uk/blog/housing/largest-drop-in-house-prices-for-12-years/#comment-679 Why will a drop in house prices effect consumer spending, this has not occurred in the U.S. The only effect a house price drop will have is to stop consumers increasing their borrowing against their property to fund their spend. A recent survey for the BBC indicates a price drop will have little effect on the spending habits of consumers. I believe that most consumers understand that at some point they have to repay their mortgage. Why will a drop in house prices effect consumer spending, this has not occurred in the U.S. The only effect a house price drop will have is to stop consumers increasing their borrowing against their property to fund their spend. A recent survey for the BBC indicates a price drop will have little effect on the spending habits of consumers.
I believe that most consumers understand that at some point they have to repay their mortgage.

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