Those who entered into sub-prime loan agreements were convinced otherwise, and the resulting cascade of foreclosures did far more to damage the economy than a collective case of cold feet about buying ever could.
The squeeze on mortgages has led to the entry of "credit crunch", along with the US source of the crisis - the "sub-prime" home loan to those with a poor credit history.
According to Fannie Mae, the government-sponsored mortgage-lending agency, up to half the people who take out sub-prime loans could qualify for a prime loan, which charges as much as four percentage points less interest, a huge saving over the 30-year life of a mortgage.