Rick Chance, Head of KPMG Corporate Finance's Special Situations Advisory Group, quoted in Reuters

March 21, 2007

On March 21, 2007, Rick Chance, Head of the Special Situations Advisory Group at KPMG Corporate Finance, was interviewed by Jim Christie of Reuters relative to "Discretionary spending seen down with home values."  

"The U.S. housing market will post declining home values for up to another 18 months because mortgages resetting with higher interest reates will force many home owners to sell their homes, adding to an already high inventory of homes for sale, says Rick Chance, head of KPMG Corporate Finance's special situations advisory group.  At the same time, many households will cut discretionary spending to set more aside for rising mortgage payments, "Put yourself in the situation of a home owner who had a mortgage at 3 to 4 percent and now it's 5.5 or 6.5 percent," Chance said. "Instead of taking two or three vacations, you may take one."

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