> I mean, if you have a mortgage it doesn't matter at all if the price of the house you are living in falls. I don't have that much insight in the technical de

> I mean, if you have a mortgage it doesn't matter at all if the price of the house you are living in falls. I don't have that much insight in the technical details of mortgages in the US but at least in Sweden, if the price of your house falls too much, the bank will send you a (huge) bill for you to cover their risk. E.g. if you buy a house for $300000 and borrow $225000, then if the expected market price of your house would fall to $200000, the bank will simply send you a $25000 bill.