Fears Grow Over Spain's Home Loans - WSJ.com: "For months, Spain's residential mortgage sector has performed an impressive feat: Despite tumbling home prices and sky-high unemployment, just a small portion of mortgage borrowers have fallen behind on their payments.
Now, some analysts and economists are wondering if Spain is in for a wave of defaults in coming months amid further job cuts meant to address the country's broader economic problems.
While banks' biggest problem now is loans to real-estate developers, 'there are signs that the residential segment could become more stressed if unemployment remains high,' said Luis Garicano, a professor at the London School of Economics. 'And if interest rates go up, families could be really stretched.'"
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