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Alan Greenspan believes that housing boom has reached its peak and that housing prices will start to decline. So what does that mean? Well, to get full appreciation of what it means, you should have been watching the most recent NOW program on the housing pyramid scheme. David Brancaccio looked into the housing market in Santa Rosa, CA, where the hot California market has driven housing prices to unbelievable prices. One of the factors driving California housing prices is the array of mortgage vehicles, including the incredibly risky interest-only loan. Even back in 2002, Californians seeking to get into the housing market were flocking to the interest-only loans. Today, nearly half of the market for new mortgages in California are interest-only loans.
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