Housing Conundrum (Part 4)

The last of four videos, this clip explains why there were such low default rates at the beginning of the 21st century, and the effect this had on the market. Sal breaks down the options for a homeowner who can no longer pay a mortgage and introduces the term "jingle mail." He discusses the continuing cycle of increased home prices, lower default rates, perceived lending risk decrease, more willing homeowners, lower loan standards, and more accessible financing. He also touches on the role of investors cashing in on this phenomenon.