The Wall St. Journal reports that some homeowners are selling their underwater homes at a loss and turning right around and investing in new homes with lower mortgage rates and getting more house in the process.
Why invest in a market that has already burned you badly? Historically low mortgage rates mean that buyers can buy new homes and keep their monthly payments low even though the new homes are more expensive.
M.P. McQueen has the story:
"The attractive terms are spurring people like Scott Ayler, 35 years old, into action. He and his wife, Jaclyn, 33, recently decided to trade up to a larger home in their native Denver, despite taking a loss on their current house."
FULL STORY: Doubling Down on Housing

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