Mortgages Exceeding Home Values, Restraining Growth

March 2012

David Marshall, assistant professor of finance at the Farmer School of Business, was quoted in the Dayton Daily News, commenting on the impact that upside-down mortgages can have on consumer spending.

"Assuming you haven't lost your job, the fact that you owe more than your house is worth shouldn't have much impact on spending," Dr. Marshall said. "But people have this wealth concept. When you feel your house is appreciating, you just feel wealthier. You feel you can better afford that new house, better afford that car."

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