NEWS > BUSINESS > MORTGAGE RATES DIP FOR THE HOMELESS

MORTGAGE RATES DIP FOR THE HOMELESS

Feb 4 2008

Washington D.C. – In a surprising turn of events, the most recent financial numbers have shown a marked increase in mortgage rates for the homeless. This marks the first significant uptick in rates since mortgages in this sector began.

“It’s largely due to an surge in the economy,” says Wedbush Morgan analyst Geoffrey Coulton. “The fact that these people don’t have homes is also a major contributing factor to these recent events”

Studies have shown that revenue from panhandling and busking have been on the increase over the last ten years, but it is the rise in pickpocketing amongst a new generation of homeless that has caused the greatest boom to the homeless economy.

“Theft has always been a major factor in this segment of the economy, but with a new focus on technique this area has shown major growth,” continues Coulton.

Government analyst Maria Sedward agrees “Pickpocketing and petty theft has been huge in the growth of this sector as new people come in with fresh new ideas. But one can’t under represent the traditional factors. Go to any street corner or alleyway in any major city and you’ll see an incredible difference in the panhandling techniques being applied.”

Government programs have long ignored this particular segment of the homeless economy says Sedward “It was always seen as a natural part of the economy, and area that never really needed focus.”

That is where private advocacy groups and donors come into play. Benjamin Hauser, a spokesperson for the Rich People against Poverty group, which has worked hand in hand with the homeless sector for years.

“You cannot deny the importance of traditional revenue streams. New markets pop up all the time, but you need a diversified portfolio to have real success. This has been our focus for years. By developing areas such as panhandling we have been able to drive a very efficient economic model. We also believe that our youth movement has been very successful. Fresh energies and fresh ideas.”

Indeed it is the younger generation that has grown hand in hand with the economic growth. Studies show that 70 percent of all new mortgage applications are from people under the age of thirty. Many banks are unsure if this is a trend or the result of colder winters and an aging population.

Whatever the reasons, the news is sure to be positive for those looking to apply for a mortgage in the near future. Mike, a homeless person for the last thirty years, says “It’s definitely good news. Sometimes it gets very difficult with all the new competition, so it’s about time we get some good news. Homeless people need to catch a break too.”

Some aren’t so positive though. “I’ve owned my box for twenty years. This doesn’t do anything for me. I should be enjoying my retirement now but instead I have to go out every day because of the competition.” Says Joe.

And some in the younger generation aren’t looking at it as a boon either, “I’m only 19 years old. There’s no way I’m being trapped into that kind of thing. People like that are slaves,” Says Eric, a recent addition to the homeless community.

“This really can’t be seen as anything but positive,” continued Hauser, “And our group will continue fighting for economic growth for the homeless economy as long as we can, or at least while the weather is good.” 

William Ashford, Business Correspondent

NEWS > BUSINESS > MORTGAGE RATES DIP FOR THE HOMELESS

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