The Motley Fool Discussion Boards
Stocks F / First American Financial
|Subject: Re: future of FAF||Date: 11/19/2005 1:13 PM|
|Author: thenderson||Number: 164 of 174|
I don't mean to profit by other people's pain, but if all these people won't be able to afford their homes, someone* is going to acquire it, right? Either through sale or foreclosure. It shouldn't really matter to the title companies how much the homes sell for. So, while I can think of other stocks that I might hesitate to invest in, I'm wondering if I even have to worry about my FAF...
Well, maybe someone will buy that house.
However, I believe the concern falls into at least three areas.
1.As interest rates rise, mortgage refinancing will slow.
2.As interest rates rise, people may decide to stay put in their current home/apartment/parent's basement.
3.If home prices fall, revenues from title services rendered on