Micros Worry About Housing and Mortgage ‘Crisis’
Apr 14th, 2008 | By Dawn R. Rivers | Category: EconomyIn its latest member survey, released last week, the National Association for the Self-Employed decided to ask how the housing market meltdown is effecting microbusiness owners. More than eight in ten microbusiness owners also own their home and a sizable 59% of them have fixed rate mortgages. That does not mean, however, that nobody is worried about it. Forty percent of survey respondents say they are somewhat or very concerned about their ability to pay their mortgages, now or in the near future. Perhaps reflecting the way microbusiness owners often use equity in their homes to finance their businesses, even more of them (62%) are somewhat or very concerned about falling home values in their communities. As for what to do about it, microbusiness owners’ favorite proposal would increase funding to the FHA, Freddie Mac and Fannie Mae, so that homeowners in trouble can trade in their adjustable rate mortgages for a fixed rate, guaranteed mortgage.
